Assume an Economy Has Automatic Stabilizers in Place That Include

question 5

Multiple Choice

Assume an economy has automatic stabilizers in place that include a progressive tax structure and a transfer payment system.Then in a period of high economic growth and high inflation, we would expect:

• A)tax revenues to fall and unemployment compensation to rise.
• B)average tax rates and welfare payments to decline.
• C)the national debt to become larger.
• D)average tax rates and government revenues to rise.
• E)government spending on social security benefits to rise.

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Definitions:

Pathological Care

Care that is harmful or detrimental to an individual’s health or wellbeing, often due to negligence or abuse.

Indiscriminant Social Behavior

Actions in social settings that do not distinguish between different social cues or contexts, often seen as inappropriate.

Dose-Response Relationship

The relationship between the quantity of exposure to a substance and the extent of its effect on an organism, typically used in pharmacology and toxicology to assess risk.

Academic Achievement

The extent to which a student, teacher, or institution has attained their short or long-term educational goals.