A. Spending on public schools
B. Military spending
C. All of these answers are automatic stabilizers
D. spending on the space shuttle
E. Unemployment benefits
Related Mcqs:
- Automatic stabilisers act to ____ government expenditures and ____ government revenues during recessions ?
A. increase: increase
B. decrease; decrease
C. increase; decrease
D. decrease; increase - Automatic stabilizers act to ______ government expenditures and _______ government revenue during an expansionary period?
A. increase; increase
B. decrease; increase
C. increase; decrease
D. decrease; decrease - If a company (considering its options on the product/market expansion grid) chooses to move into different unrelated fields (from what it ha ever done before) with new products as a means to stimulate growth the company would be following which of the following general strategies ?
A. market penetrations
B. market development
C. product development
D. diversification - Which of the following statements regarding taxes is correct ?
A. Most economists believe that in the short run the greatest impact of a change in taxes is on aggregate supply, not aggregate demand
B. An increase in taxes shifts the aggregate demand curve to the right
C. A decrease in taxes shifts the aggregate supply curve to the left
D. A permanent change in taxes has a greater effect on aggregate demand than a temporary change in taxes. - Which of the following statements about stabilization policy is not true ?
A. Many economists prefer automatic stabilizers because they affect the economy with a shorter lag than activist stabilization policy
B. None of these answers are true
C. Long lags enhance the ability of policy makers to fine tune the economy
D. When policy makers implement activist stabilization policies there is a significant risk that their policies may actually have a destabilizing effect - Which of the following best describes how an increase in the money supply shift the aggregate demand curve ?
A. The money supply shifts right prices fall spending increases and the aggregate demand curve shifts right
B. The money supply shifts right the interest rate rises investment decreases and the aggregate demand curve shifts left
C. The money supply shifts right the interest rate falls, investment increases, and the aggregate demand curve shifts right
D. The money supply shifts right, prices rise, demand curve shifts left - Which of the following statements about price and marginal cost in competitive and monopolized markets is true ?
A. In competitive markets, price equals marginal cost, in monopolized markets price exceeds marginal cost.
B. In competitive markets price equals marginal cost, in monopolized markets price equals marginal cost
C. In competitive markets price exceeds marginal cost, in monopolized markets price exceeds marginal cost
D. In competitive markets price exceeds marginal cost in monopolized markets price equals marginal cost - Which of the following is not a function of money ?
A. hedge against inflation
B. Medium of exchange
C. unit of account
D. Store of value - Which of the following statements supports deregulation of industries ?
A. Technological change has made it possible for many industries to become more competitive
B. Because few real natural monopolies exist there is rarely a reason for government regulation
C. Many instances of government regulation have succeeded in reducing competition in industries where competition may be beneficial
D. All of the above - Which of the following statements is true ?
A. All costs are fixed in the short run.
B. All costs are variable in the long run
C. All costs are variable in the short run
D. All costs are fixed in the long run
