Ask Question
BusinessBusiness
27 September, 01:38

What are the consequences of automatic stabilizers when real GDP increases?

Choose one:

A. Tax revenues decrease and payments to individuals increase.

B. Tax revenues rise and then fall while payments to individuals fall and then rise.

C. Tax revenues decrease and payments to individuals decrease.

D. Tax revenues increase and payments to individuals decrease.

E. Tax revenues increase and payments to individuals increase.

+3
Answers (1)
  1. 27 September, 04:08
    0
    C. Tax revenues decrease and payments to individuals decrease.

    Explanation:

    Automatic stabilizers acts as shock absorbers and reduce the impact in an economy.

    Automatic stabilizers are ongoing government policies that automatically adjust tax rates and transfer payments in a manner that is intended to stabilize incomes, consumption, and business spending over the business cycle
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “What are the consequences of automatic stabilizers when real GDP increases? Choose one: A. Tax revenues decrease and payments to ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Is it possible that a person might be an effective leader in one situation but not in another
Answers (1)
Patagonia managers look for employees who actively participate in the sport they design products for (i. e. a surfboard shaper has to love to surf). Requiring this passion and experience is part of the
Answers (1)
Career fulfillment means
Answers (1)
Liberia, a very poor nation in West Africa, is relatively abundant in resources such as mahogany and rubber tree forests, iron-ore deposits, and diamonds.
Answers (1)
Which of the following is an adjustment to a pay rate to reflect differences in working conditions or labor markets? A. bonusB. pay differentialC. green-circle rateD. rank-and-file adjustmentE. red-circle rate
Answers (1)
New Questions in Business
A gift that might otherwise be viewed as a future interest in a trust can be treated as a present interest gift if:
Answers (1)
Curtain Co. paid dividends of $10,000; $12,500; and $14,000 during Year 1, Year 2, and Year 3, respectively. The company had 2,100 shares of 5.5%, $100 par value preferred stock outstanding that paid a cumulative dividend.
Answers (1)
Describe how legal contracts provide incentives for people to exchange goods and services
Answers (1)
List four wan technologies that are carried over the pstn.
Answers (1)
Which of the events is likely to occur when the business cycle is in a period of recession (contraction) ? an increase in the standard of living an increase in unemployment an increase in GDP (gross domestic product) an increase in economic growth
Answers (1)
Home » Business » What are the consequences of automatic stabilizers when real GDP increases? Choose one: A. Tax revenues decrease and payments to individuals increase. B. Tax revenues rise and then fall while payments to individuals fall and then rise. C.
Sign Up Forgot Password?