Ask Question
BusinessBusiness
8 January, 10:53

Automatic stabilizers are changes in taxes or government spending that increase aggregate demand without requiring policy makers to act when the economy goes into recession. Group of answer choices A. True B. False

+5
Answers (1)
  1. 8 January, 12:49
    0
    Answer: True

    Explanation: In simple words, automatic stabilizers refers to the government policies, that runs on a continuing basis, that automatically changes tax rates and interest factors etc in case of economic changes like recession or inflation.

    These stabilizers works automatically due to market forces as per the changing economic scenario and do not need additional efforts from government to come into play.

    Automatic stabilizers are favored by Keynesian economics to be used as a tool to tackle economic recessions and slumps.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Automatic stabilizers are changes in taxes or government spending that increase aggregate demand without requiring policy makers to act ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Brian declares bankruptcy. what benefits can you obtain by declaring bankruptcy? brian declares bankruptcy, which triggers a (n) ___. this blocks ___.
Answers (1)
You are given the following information about aggregate demand at the existing price level for an economy: (1) consumption = $400 billion; (2) investment = $40 billion; (3) government purchases = $90 billion; and (4) net export = $25 billion.
Answers (1)
Assume the natural rate of unemployment in the U. S. economy is 5 percent and the actual rate of unemployment is 9 percent. According to Okun's law, the negative GDP gap as a percentage of potential GDP is. A) 2 percent. B) 8 percent. C) 10 percent.
Answers (1)
What strategy should you use to obtain the lowest possible apr on a loan?
Answers (1)
Todd has accumulated assets of $550,000 that he wishes to dedicate to his retirement. Inflation is anticipated to average 2% over the next 20 years. He plans on retiring in 15 years.
Answers (1)
New Questions in Business
An HP-10BII can solve problems with up to 15 beginning-of-year cash flows when there are no consecutive equal cash flows. True / False.
Answers (1)
James Sales Company uses the retail inventory method to value its merchandise inventory. The following information is available for the current year: Cost Retail Beginning inventory$ 30,000$ 45,000 Purchases175,000240,000 Freight-in2,500 - Net
Answers (1)
The government challenged the acquisition by Procter & Gamble (P&G) of Clorox. Clorox was the leading manufacturer of liquid bleach at the time of the acquisition, Page 504accounting for 48% of the national sales.
Answers (2)
If a limited partner actively participates in day-to-day management of the business, he or she may forfeit limited partner status and lose limited liability for debts and liabilities. a. trueb. false
Answers (1)
A dress was originally selling for $150. Due to changing styles the 1st markdown was 10% and the second markdown was 20%. The dress still did not sell so a final markdown of 5% was taken. The sale price is currently:
Answers (1)
Home » Business » Automatic stabilizers are changes in taxes or government spending that increase aggregate demand without requiring policy makers to act when the economy goes into recession. Group of answer choices A. True B. False
Sign Up Forgot Password?