Other things the same,during recessions taxes tend to
A) rise.The rise in taxes stimulates aggregate demand.
B) rise.The rise in taxes contracts aggregate demand.
C) fall.The fall in taxes stimulates aggregate demand.
D) fall.The fall in taxes contracts aggregate demand.
Correct Answer:
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Q43: Macroeconomic forecasts are
A)precise;this makes policy lags less
Q44: It is likely that a constitutional amendment
Q46: The most important automatic stabilizer is
A)open-market operations.
B)the
Q47: The lag problem associated with monetary policy
Q50: The lag problem associated with fiscal policy
Q51: Critics of stabilization policy argue that
A)"animal spirits"
Q52: Opponents of active stabilization policy
A)advocate a monetary
Q202: An example of an automatic stabilizer is
A)unemployment
Q205: Monetary policy affects the economy with a
Q206: During recessions, taxes tend to
A)rise and thereby
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