0%
0 / 15 answered
Automatic Stabilizers Practice Test
•15 QuestionsQuestion
1 / 15
Q1
As the economy enters a recession, payroll tax collections decline automatically as employment and wages fall, and unemployment insurance benefits rise automatically. With no discretionary fiscal policy action, which outcome is most consistent with the built-in countercyclical effects of automatic stabilizers?
As the economy enters a recession, payroll tax collections decline automatically as employment and wages fall, and unemployment insurance benefits rise automatically. With no discretionary fiscal policy action, which outcome is most consistent with the built-in countercyclical effects of automatic stabilizers?