Which Statement Is True

question 90

Multiple Choice

Which statement is true?

• A)On occasion we have inflationary gaps and recessionary gaps at the same time.
• B)When we are at equilibrium GDP,we are generally at full employment.
• C)Fiscal policy and the automatic stabilizers are identical terms.
• D)None of the statements are true.

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Definitions:

Social Security

A government program that provides financial assistance to people with insufficient or no income, especially the elderly, disabled, and unemployed.

Medicare

A federal health insurance program in the United States for people who are 65 or older, certain younger people with disabilities, and people with End-Stage Renal Disease.

Federal Unemployment Taxes

Taxes paid by employers to fund the federal government's oversight of the state's unemployment compensation programs.

Withhold

To deduct or hold back a portion of something, such as taxes from a paycheck.