Which describes the role of automatic stabilizers in the economy?

Automatic stabilizers are discretionary changes to taxes, government spending, and transfers that Congress makes in an attempt to improve the economy.

Automatic stabilizers refer to industries that are not subject to the fluctuations of the economy, and therefore moderate the effects of recessions. Food, housing, and the military are examples of these industries, which are usually more stable than the rest of the economy.

Automatic stabilizers are changes in the money supply that occur automatically when inflation or unemployment occurs.

Automatic stabilizers have a similar impact as discretionary fiscal policy but occur automatically, without action by the government. Automatic stabilizers increase aggregate demand during recessions and reduce aggregate demand during expansions.

Answers

Answer 1

Answer:

d. Automatic stabilizers have a similar impact as discretionary fiscal policy but occur automatically, without action by the government. Automatic stabilizers increase aggregate demand during recessions and reduce aggregate demand during expansions.

Explanation:

Automatic stabilizers are changes in taxes and government expenditure that occur automatically as the economy fluctuates and simulate discretionary fiscal policy.

As one example, transfer payments typically increase during recessions as more people become eligible for various programs. Aggregate demand increases as people receiving transfers increase their consumption. Discretionary fiscal policy during a recession might seek the same goal of increasing aggregate demand.

A key difference, however, is that discretionary fiscal policy requires action from government, whereas automatic stabilizers are automatic. This is significant when policy makers have trouble coming to agreement about the best course of action.


Related Questions

What does the ability to build great buildings out of stone tell you about maya political power?

Answers

Answer:

The ability to build great buildings out of stone tells you that Mayan political power was needed to build them. Mayan architecture was remarkable because of scale because the Mayan buildings were very big.

Explanation:

Hope it helps...:)

how does teenage pregnancy at schools affect teachers​

Answers

Answer:

Teenage pregnancy has a negative impact on the pregnant learners themselves.

Explanation:

Effects of teenage pregnancy on learners at school

Teenage pregnancy has a negative impact on the pregnant learners themselves. Their situation leads to exclusion from peer groups, poor performance or even to their dropping out of school. However, sometimes their pregnancy is the result of a deliberate act because it is seen as fashionable.

Hieratic writing was first used for ___________.

A) letter writing
B) public announcements
C) royal and sacred documents
D) government documents

Answers

Answer:

A) letter writing

Hope This Helps

Which of the following was NOT part of the Republican party's platform in the post-Civil War period?

Answers

you didn’t post any options.

what are needed to clean a classroom?​

Answers

Answer:

Empty & Disinfect Trashcans Daily. ...

Limit Touching Doorknobs & Handles. ...

Clean Desks & Tables Daily. ...

Pay Attention to Plastic Surfaces. ...

Develop a "Clean Toy" System. ...

Make Sure Fabric Toys Are Washable. ...

Limit Who Uses Whiteboards. ...

Disinfect High-Touch Technology Often

What is Chang in demand

Answers

Answer:

A change in demand describes a shift in consumer desire to purchase a particular good or service, irrespective of a variation in its price.

Answer:

the result of a change in any of the demand, such as consumer preferences

Explanation:

A change in demand is the result of a change in any of the demand determinants, such as consumer preferences, consumer expectations, consumer income, the price of related products and the number of buyers. When consumer income decreases, consumer spending decreases; therefore, consumers spend less on any given price level.

Which of the following explains the implications of the federal government buying back its own debts from the Federal Reserve?(1 point)

The demand for Treasurys from investors and foreign governments could be diminished from the Federal Reserve buying the securities.

The money supply increases, which results in higher interest rates for the national debt, which could increase the amount spent to pay for the interest on the national debt.

The money supply decreases, which could result in a liquidity crisis for the banks and the federal government. Interest rates would decrease to help increase the money supply.

Interest rates on the national debt decrease, which decreases the amount spent to pay for the interest on the national debt. The federal government could pay for social welfare programs.

Answers

Answer:

c

Explanation:

Which word signals a descriptive example?
Is
has
show
including

Answers

Answer:

It likely is 'has' because not only is it about to describe something that a certain thing or person looks like or is and has but unlike show the second choice you'd think is a descriptive example because of what it means, show is only a definition of description it is not setting a descriptive example.

Paraphrase When you paraphrase, you restate a text in your own words. Paraphrase Romeo’s thoughts in act III, Scene iii, lines 29-51. (b) Criticize How would you describe Romeo’s response in these lines?

Answers

The line " This is Dear mercy, and thous seest it not"  this lines depicts according to Friar, that the punishment was a type of mercy and he should be grateful.

What was the line about?

The lines from act III, scene III of Romeo and Juliet is one that  Friar Laurence  makes  Romeo to understand that he had to be grateful for this punishment given to him

When Romeo knows about his punishment for his act of killing Tybalt and that it was banishment, he informs Friar Lawrence  that he prefer death than been banished but Frair made him to see reasons why it was better.

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who is better?


kirishima or bakugo

Answers

Answer:

I think Kirishima.

Explanation:

I don't know both of these. Sorry if I am wrong.

Answer:

OMG KIRISHIMA IS WAY HOTTER!!!

Explanation:

Which statement best summarizes this passage? Segregation of schools harms African American children. Children eventually overcome the effects of segregation. Segregation is a form of separation, not discrimination. Segregation has no association with racial inferiority.

Answers

Answer: segregation of schools harm African American children

Explanation:

got it right on Edge

As segregation of schools harms African American children, were statement best summarizes this passage. Thus option (A) is correct.

What is the passage?

The length of a passage varies depending on the context and the goal of the extraction. A passage can be, for example, a sentence's clause, a few phrases, or it can be a few pages.

American children are negatively impacted by school segregation. They are unable to socialize with their classmates from different schools, which may cause social isolation. They might experience some type of discrimination and eventually retreat.

Therefore, The right option (A) is correct.

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Why was Earth Day planned for April 22?
A
April 22 was Senator Nelson's birthday.

B
Most college students would be on spring break in April.

C
The weather was likely to be warm and pleasant toward the end of April.

D
Senator Nelson didn't want his new holiday to compete with the 4th of July.

Answers

B, Most college students would be on spring break in April

These types of governments attempt to control all aspects of citizens' lives (an
example would be a Communist Regime, such as China)?
Oligarchy
Dictatorship
Constitutional monarchy
Totalitarian dictatorship

Answers

Answer:

dictatorship totalitarian dictatorship

Explanation:

Enter the temperature shown on the thermometer.

Tokyo, Japan __°F

Answers

Answer:

63°F is the reading on the thermometer

Which ideas from the poem are best reflected in the painting? Check all that apply.

Answers

Can I please have the poem and a picture of the painting so I can answer

Why was the Northwest Ordinance of 1787 considered a good thing?

Answers

Answer:

Also known as the Ordinance of 1787, the Northwest Ordinance established a government for the Northwest Territory, outlined the process for admitting a new state to the Union, and guaranteed that newly created states would be equal to the original thirteen states.

Explanation:

What is called "the greatest movement of people in the history of the world"?

A) the importation of slaves from Africa
B) the forced march of eastern Native Americans to Oklahoma territory

C) the original colonization of North America

D) the many millions of people who emigrated to the United States from 1790-1930​

Answers

Answer:

A

Explanation:

Answer:

A

Explanation:

the greatest movement of people in the history of the world"?

You are Chair of the Federal Reserve Board. In your meeting with the Federal Open Market Committee, the committee unanimously votes to increase the money supply using open market operations (OMOs). During the press conference after the meeting, a reporter asks you to explain what OMOs are and how you will use them to increase the money supply. You reply that:

a. OMOs are the selling and buying of government securities. The money supply increases when purchasing occurs and contracts when selling occurs. OMOs work by changing the amount of excess reserves available in the banking system.
b. OMOs alter the reserve requirement up or down. The money supply will increase when we use OMOs to decrease the reserve requirement.
c. Open market operations refer to manipulating the rate at which the Federal Reserve Bank (Fed) loans money to member banks. An increase in the money supply occurs when the Fed increases this rate, which decreases the amount of required reserves in the banking system.
d. OMOs are the selling and buying of government securities. The money supply increases when selling occurs and contracts when buying occurs. OMOs work by changing the amount of excess reserves available in the banking system.

Answers

Answer:

a. OMOs are the selling and buying of government securities. The money supply increases when purchasing occurs and contracts when selling occurs. OMOs work by changing the amount of excess reserves available in the banking system.

Explanation:

OMOs are open market operations and refer to the purchase and sale of government securities by the Federal Reserve Bank (Fed) in an effort to change the money supply. If the Fed wants to increase the money supply, it will purchase government securities. The Fed buys the securities and pays for them by increasing the selling banks' reserves in their account at the Fed. The increase in reserves will increase the amount of excess reserves in the banking system and fuel deposit expansion, assuming the bank wishes to keep excess reserves at a minimum.

The answer to your question should be A.

The Blackfoot hunted bison in which culture region?
O Pacific Northwest
O Southwest
O Great Plains
O Eastern Woodlands

Answers

Answer:

great plains

Explanation:

The Blackfoot (also called “Blackfeet”) are a Native American nation who were once nomadic. They migrated from the Great Lakes region to the northwestern United States. They lived in the northern Great Plains, especially in the rich bison ranges of southern Alberta and northern Montana

Answer:The answer is outhern Alberta and northern Montana.

Explanation:

Describe TWO different reasons that South Carolina’s rice plantations depended on enslaved Africans.

Answers

Because they knew how to plant, grow, harvest, and perform well through the difficulties in the labor intensive crop. They were native and experienced.

importance of training and development in the public sector

Answers

Explanation:

It is necessary for the public sector organisation to train and develop the skills of its personnel in order to improve organisational.,team and individual performance.

When selecting federal judges is the president required to get Congressional approval? Why or why not?

Answers

Answer:

Judges of the supreme Court.” The process of appointing Justices has undergone changes over two centuries, but its most basic feature—the sharing of power between the President and Senate—has remained unchanged: To receive appointment to the Court, a candidate must first be nominated by the President and then confirmed

Why do people borrow money from banks?

To buy books and music
To buy large items like cars
To go to a fancy restaurant
To hide in their mattresses

Answers

Answer:

anyways the answer is B

Explanation: people only borrow money when it's important, the only thing important there is B, i also did the test and got it right and the bank wouldn't give someone money to go in a fancy restaurant or to hide their mattresses or to buy books and music.

Complete each statement by selecting the appropriate type of fiscal policy.

a. Lowering inflation and increasing unemployment is a goal of __________ fiscal policy.
b. Lowering unemployment and prices is a goal of __________ fiscal policy.
c. Lowering unemployment and increasing inflation is a goal of __________ fiscal policy.
d. __________ fiscal policy focuses on reducing regulations on businesses.
e. __________ fiscal policy involves more government spending money on anything.
f. __________ fiscal policy encourages human and capital development.

WORD BANK
Expansionary
Contractionary
Supply-side

Answers

Answer:

a) Lowering inflation and increasing unemployment is a goal of Contractionary fiscal policy.

b) Lowering unemployment and prices is a goal of Supply-side fiscal policy.

c) Lowering unemployment and increasing inflation is a goal of Expansionary fiscal policy.

d) Supply-side fiscal policy focuses on reducing regulations on businesses.

e) Expansionary fiscal policy involves more government spending money on anything.

f) Supply-side fiscal policy encourages human and capital development.

Explanation:

The goal of contractionary fiscal policy is to reduce inflation. Therefore the tools would be an decrease in government spending and an increase in taxes. This would shift the aggregate demand curve to the left decreasing inflation, but it may also cause some unemployment.

Expansionary fiscal policy is done by increasing government spending or decreasing taxes. It is intended to boost growth to a healthy economic level by reducing regulations on business (reducing taxes).

Expansionary fiscal policy can increase government spending on goods and services, which boosts aggregate demand and leads to increased economic output. Spending on education and on scientific research improve human capital in the form of worker productivity.

Traditional fiscal policy calls for manipulating the government's budget (tax revenues and expenditures) to shift aggregate demand (AD) and return the economy to full‑employment equilibrium.

Contractionary fiscal policy is used to lower inflation by decreasing AD through higher taxes, lower government spending, or both. The unfortunate side effect is that it also lowers real GDP, which increases unemployment.

Expansionary fiscal policy is used during a recession to increase AD through lower taxes, higher government spending, or both, which increases real GDP and lowers unemployment. In this view, what the government actually spends money on is somewhat irrelevant. The idea is to just increase spending, which provides someone with new income, which kicks off the multiplier process. The unfortunate side effect is higher prices.

Supply‑side policies are designed to affect aggregate supply, not aggregate demand. If there is an increase in aggregate supply, the economy will come to a new equilibrium position with both lower unemployment, because real GDP increases, and lower inflation. The unfortunate reality here is that supply‑side policies are not clearly defined and work in the long run, not in the short run.

Specific supply‑side policies include reducing disincentives to work hard and invest, such as reducing income taxes and removing government regulations that lower firms' ability to produce. Education and grants for research and development can also help increase productivity.

Financial planning is a complex process and should be done with the assistance of a
professional
True
False

Answers

When it comes to financial planning, things can get quite complicated and might need the help of a professional so this is True.

Is a professional needed for financial planning?

Financial planning might sound easy but it can get quite complicated when one thinks about all financial aspects of their lives ranging from tax and legal issues to creditors.

For this reason, it is usually important that the services of a financial expert is sought out.

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this type of policy is most similat to which cold war idea
?

Answers

Answer:Proxy wars.During the Cold War period, the so called proxy wars, used by the United States and the Soviet Union

Explanation:

what are the methods to establish valid assessment ​

Answers

= Deconstruct the standards

= Align items and levels of thinking

= Take items to the next level with rigor and relevance

= Make assessment part of planning

The methods are given below.

Deconstruct the standardsAlign items and levels of thinkingTake items to the next level with rigor and relevanceMake assessment part of planning

What is the validity assessment method?

Assessment validity refers to the extent that which a test measures what it is supposed to measure. The Standards for Educational and Psychological Testing (2014) defines validity as the “degree to which evidence and theory support the interpretations of test scores for proposed uses of tests”.

What are the different types of validity?

Validity can be demonstrated by showing a clear relationship between the test and what it is meant to measure. This can be done by showing that a study has one (or more) of the four types of validity: content validity, criterion-related validity, construct validity, and/or face validity.

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Question: Who was second in command to the local kings and managed the city-state courts in the Aztec Empire?

Answer Choices:
priests
warriors
chief justices
tlatoanis

Answers

Answer:

Worriors

Explanation:

B is probably the best answer

Answer:

it is chief justices

Explanation:

i got it right myself

help me out with this question in attachment​

Answers

Answer: uhh its a go ogle meeting

Explanation:

The two items that the Arayans brought into India were the Caste System and the religion called Hinduism.
True
False

Answers

Answer:

True

Explanation:

Answer:

True

Explanation:
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