Which of the following is a reason why the economy has tipped into recession less frequently...
Which of the following is a reason why the economy has tipped into recession less frequently in recent decades?
Use letters in alphabetical order to select options
-
A
The size of government spending and taxes has decreased in the second half of the twentieth century.
-
B
The size of government spending has increased and taxes have decreased in the second half of the twentieth century.
-
C
The size of government spending and taxes has increased in the second half of the twentieth century.
-
D
The size of government spending has decreased and taxes have increased in the second half of the twentieth century.
Homework Answers
One of the reason that the economy has tipped into recession less frequently in recent decades is that the size of government spending and taxes has increased in the second half of the twentieth century.
The correct option is C. The size of government spending and taxes has increased in the second half of the twentieth century.
Add Answer to:
Which of the following is a reason why the economy has tipped
into recession less frequently...
Check answers please ? s) If the economy is in a recession, 8) A) The economy...
Check answers please ?
s) If the economy is in a recession, 8) A) The economy suffers from structural unemployment, which can be alleviated by debt refinancing. B) Larger deficits will decrease the national debt. C) Deficit spending will not increase the size of the debt because interest rates will be falling. D) It is operating inside the production posibilities curve, and the opportunity cost of deficit spending is zero. 9 9) An increase in unemployment, ceteris paribus, A) Reduces...
1) Suppose that the national economy is experiencing a recession with an estimated recessionary gap of...
1) Suppose that the national economy is experiencing a recession with an estimated recessionary gap of $10 billion. Congress is considering the use of fiscal policy to ease the recession, and due to current political sentiments, it has determined that the maximum spending increase the government is willing to support is $3 billion. The government wants to make up the remainder of the recessionary gap using tax cuts. If a spending increase of $3 billion is approved and the MPC...
14. (2 pt) Explain the effect of a discretionary cut in taxes of $40 billion on...
14. (2 pt) Explain the effect of a discretionary cut in taxes of $40 billion on the economy when the economy's MPC is .75. How does this discretionary fiscal policy differ from a discretionary increase in government spending of $40 billion? A tax cut of $40 billion will result in initial increase in consumption of S billion). (Note that $10Bil. is saved based on marginal propensity to save (MPS), that is 25 (because 1-MPC-MPS). Then .25 x $40-$10 billion). This...
If the economy is going into a recession, a good industry to invest in would be the __________ industry. Multiple Choice...
If the economy is going into a recession, a good industry to invest in would be the __________ industry. Multiple Choice medical services automobile banking construction An industry analysis for manufacturers of a small personal care gadget observed the following characteristics: Industry sales have grown at 15%-20% per year in recent years and are expected to grow at 10%-15% per year over the next 3 years, still well above the economic growth rate. Some U.S. manufacturers are attempting to enter...
Again, please consider the closed economy of Economia, which has the following information: $6500 consumption $7500...
Again, please consider the closed economy of Economia, which has the following information: $6500 consumption $7500 government spending (NOT including transfer payments) $10,000 overall taxes $2000 transfer payments $18,000 total income (output) Based on your answer to the last question, the government brings in ______ in net tax revenues than it spends and runs a budget _________. Group of answer choices more; deficit more; surplus less; deficit less; surplus
1. To stimulate economic activity during a severe recession, the strongest appropriate fiscal policy is: a....
1. To stimulate economic activity during a severe recession, the strongest appropriate fiscal policy is: a. an increase in taxes and/or an increase in government spending b. an increase in taxes and/or a decrease in government spending! c. a decrease in taxes and/or an increase in government spending d. a decrease in taxes and/or a decrease in government spending e. a decrease in government purchases and/or a decrease in transfer payments 2. An increase in income tax rates: a. makes...
Related to the Economics in Practice Federal government expenditures and receipts for the simple economy of...
Related to the Economics in Practice Federal government expenditures and receipts for the simple economy of the nation of Topanga are listed in the table below. The government of Topanga would like to reduce the debt-to-GDP ratio, and the Finance Minister of Topanga has proposed the following: "The best way to reduce the debt-to-GDP ratio is to increase GDP, because with a larger GDP, the ratio will have to get smaller. I therefore propose that government expenditures be increased by...
QUESTION 1 Which of the following is an example of an automatic fiscal policy stabilizer? a....
QUESTION 1 Which of the following is an example of an automatic fiscal policy stabilizer? a. Tax revenues fall as real GDP decreases. b. Congress decides to cut spending on national defense. c. Congress cuts individual income tax rates. d. Tax revenues rise after Congress raises corporate tax rates. QUESTION 7 When a country's economy is producing at a level that is less than its potential GDP, the standardized employment deficit will show a ________ than the actual deficit. a....
QUESTION 47 Which of the following is a reason why most economists prefer a wage subsidy...
QUESTION 47 Which of the following is a reason why most economists prefer a wage subsidy to a minimum wage? C ) A. A wage subsidy decreases low-skilled employment while a minimum wage increases it. accumulation of human capital. O C. A wage subsidy helps businesses while a minimum wage helps workers. ()D A wage subsidy does not require more government spending while a minimum wage requires moregovernment spending. QUESTION 48 The government places rent controls on apartments, pushing the...
Incorrect Question 11 0/2 pts When you look at countries that have high levels of GDP...
Incorrect Question 11 0/2 pts When you look at countries that have high levels of GDP and compare them to countries with very low levels of GDP, what, according to our text, can you say about the relationship between GDP and leisure time? There is a positive relationship between a country's GDP and the average amount of leisure time enjoyed by its citizens (the higher GDP, the more leisure time on average) There is no direct relationship between a country's...
Check answers please ?
s) If the economy is in a recession, 8) A) The economy suffers from structural unemployment, which can be alleviated by debt refinancing. B) Larger deficits will decrease the national debt. C) Deficit spending will not increase the size of the debt because interest rates will be falling. D) It is operating inside the production posibilities curve, and the opportunity cost of deficit spending is zero. 9 9) An increase in unemployment, ceteris paribus, A) Reduces...
14. (2 pt) Explain the effect of a discretionary cut in taxes of $40 billion on the economy when the economy's MPC is .75. How does this discretionary fiscal policy differ from a discretionary increase in government spending of $40 billion? A tax cut of $40 billion will result in initial increase in consumption of S billion). (Note that $10Bil. is saved based on marginal propensity to save (MPS), that is 25 (because 1-MPC-MPS). Then .25 x $40-$10 billion). This...
1. To stimulate economic activity during a severe recession, the strongest appropriate fiscal policy is: a. an increase in taxes and/or an increase in government spending b. an increase in taxes and/or a decrease in government spending! c. a decrease in taxes and/or an increase in government spending d. a decrease in taxes and/or a decrease in government spending e. a decrease in government purchases and/or a decrease in transfer payments 2. An increase in income tax rates: a. makes...
Related to the Economics in Practice Federal government expenditures and receipts for the simple economy of the nation of Topanga are listed in the table below. The government of Topanga would like to reduce the debt-to-GDP ratio, and the Finance Minister of Topanga has proposed the following: "The best way to reduce the debt-to-GDP ratio is to increase GDP, because with a larger GDP, the ratio will have to get smaller. I therefore propose that government expenditures be increased by...
Incorrect Question 11 0/2 pts When you look at countries that have high levels of GDP and compare them to countries with very low levels of GDP, what, according to our text, can you say about the relationship between GDP and leisure time? There is a positive relationship between a country's GDP and the average amount of leisure time enjoyed by its citizens (the higher GDP, the more leisure time on average) There is no direct relationship between a country's...
Most questions answered within 3 hours.
-
The following temperatures show the (fictional) daily low
measured at O'Hare airport every January 1st from...
asked 4 minutes ago -
Your friend is interested in the characteristics of fast tree
planters. He searched through the records...
asked 12 minutes ago -
. 0.67 g of Ag is deposited electrolytically from
AgNO3 after a certain period of time...
asked 13 minutes ago -
assuming that the boric acid, h3po3 present at the end of the
borax tritation has a...
asked 12 minutes ago -
When a carbonate solution is acidified, carbon dioxide is
produced.
2H+(aq) + CO32-(aq) → H2O(l) +...
asked 51 minutes ago -
A reaction has the following rate law: Rate =
kr[A][B]2. In experiment 1, the
concentrations of...
asked 49 minutes ago -
king owns a large number of public pay phones. as rhe use of
payphones decline deamatically,...
asked 52 minutes ago -
3.7 - A book is sitting on a table. The mass of the book
is 1...
asked 1 hour ago -
Which term describes the process by which a single strand of DNA
serves as a template...
asked 1 hour ago -
LAB FOOD DRING
ANSWER THE QUESTIONS:
Q1. What value is the moisture content versus time and...
asked 1 hour ago -
You are told that an object has zero acceleration. Two forces on
the object are: F_1...
asked 1 hour ago -
The usual starting point for preparing a master budget is
forecasting or estimating:
Multiple Choice
Sales....
asked 1 hour ago