[Solved] Automatic Stabilizers Refer to
Question 6
Multiple Choice
Question 6Automatic stabilizers refer to
A)the money supply and interest rates that automatically increase or decrease along with the business cycle.
B)government spending and taxes that automatically increase or decrease along with the business cycle.
C)changes in the money supply and interest rates that are intended to achieve macroeconomic policy objectives.
D)changes in federal taxes and purchases that are intended to achieve macroeconomic policy objectives.
E)restrictions on the size of government budget deficit designed to ensure the long-term fiscal stability of the government.
Explore answers and other related questions 10+ million students use Quizplus to study and prepare for their homework, quizzes and exams through 20m+ questions in 300k quizzes.
Business
Explore our library and get Economics Homework Help with various study sets and a huge amount of quizzes and questions
Related Questions
- Q1:In the 2015 federal election campaign the current federal government promised more ________ aimed at increasing real GDP and employment. A)discretionary fiscal policy B)an automatic stabilizer C)contractionary fiscal policy D)a transfer payment E)expansionary monetary policy
- Q2:If Parliament passed a one-time tax cut in order to stimulate the economy in 2015, and tax rate levels returned to their pre-2015 level in 2016, how should this tax cut affect the economy? A)Households on average would save an amount greater than the tax cut. B)The tax cut would stimulate spending by households. C)The tax cut would shift the aggregate demand curve to the right. D)The tax cut would raise the price level in 2015. E)The tax cut would reduce investment by firms in 2015.
- Q3:Fiscal policy refers to changes in A)provincial and local taxes and purchases that are intended to achieve social policy objectives. B)taxes and purchases that are intended to achieve macroeconomic policy objectives. C)federal taxes and purchases that are intended to fund tighter airport security. D)the money supply and interest rates that are intended to achieve macroeconomic policy objectives. E)credit conditions, such as the requirements to qualify for a mortgage.
- Q4:Which of the following would be classified as fiscal policy? A)The federal government passes tax cuts to encourage firms to reduce air pollution. B)The Bank of Canada cuts interest rates to stimulate the economy. C)A provincial government cuts taxes to help the economy of the province. D)The federal government cuts taxes to stimulate the economy. E)Provinces increase taxes to fund education.
- Q5:Which of the following is an objective of fiscal policy? A)energy independence from Middle East oil B)drug plan coverage for all Canadians C)discovering a cure for AIDs D)high rates of economic growth E)winning hockey gold at the winter Olympics
- Q7:The increase in the amount that the government collects in taxes when the economy expands and the decrease in the amount that the government collects in taxes when the economy goes into a recession is an example of A)automatic stabilizers. B)discretionary fiscal policy. C)discretionary monetary policy. D)automatic monetary policy. E)progressive taxation.
- Q8:The increase in government spending on Employment Insurance payments to workers who lose their jobs during a recession and the decrease in government spending on unemployment insurance payments to workers during an expansion is an example of A)automatic stabilizers. B)discretionary fiscal policy. C)discretionary monetary policy. D)automatic monetary policy. E)government purchases.
- Q9:Which of the following would not be considered an automatic stabilizer? A)legislation increasing funding for job retraining passed during a recession B)decreasing unemployment insurance payments due to decreased jobless during an expansion C)rising income tax collections due to rising incomes during an expansion D)declining social housing payments due to more persons finding jobs during an expansion E)declining sales tax (HST or GST)revenue as the economy enters a recession
- Q10:In the 1960s and 1970s, the majority of government spending took place at the ________, and since the 1990s, the majority of government spending has taken place at the ________. A)provincial and local levels; federal level B)local level; federal level C)federal level; provincial and local levels D)federal level; provincial level E)international level; municipal level
- Q11:Federal government purchases, as a percentage of GDP, A)have risen since the early 1960s. B)have fallen since the early 1960s. C)have remained roughly the same since the early 1960s. D)rose from the early 1960s until the mid-1990s, and then fell. E)fell from the 1960s until the mid 1990s and the rose rapidly.
Get Free Access Now!
Upload
Get free access by uploading any valuable academic documents
Invite
Invite your friends by sharing your unique referral link, and get a free access
Invite a friend
Join Us
Sign up to get 5 free question for every quiz you visit. Or Subscribe and get instant access
Contact Us
© 2020-2022 Quizplus LLC. All Rights Reserved