Video Follow-up: Macro 3.9- Automatic Stabilizer

Last updated 10 months ago
5 questions
1

With respect to automatic stabilizers, match the following

Draggable itemCorresponding Item
During Business Cycle Expansion
Budget Deficit will Decrease
During Business Cycle Contraction
Budget Deficit will Increase
1

What is one type of an automatic stabilizer?

1

The purpose of automatic fiscal stabilizers is to reduce the impact of swings in the business cycle.

1

With respect to automatic stabilizers, sort the following:

  • Taxes Automatically Increase
  • Taxes Automatically Decrease
  • Transfer Payments Automatically Increase
  • Transfer Payments Automatically Decrease
  • Contractionary Period
  • Expansionary Period
1

Which of these are a downside to fiscal policy?