Answer:
E
Explanation:
Automatic stabilizers are stabilizers that adjust the economy automatically without the intervention of external agents . examples include progressive tax and transfer payments
In an expansion, progressive tax increases the tax paid and this reduces disposable income
In a contraction, tax paid is reduced and this increases disposable income
Automatic stabilizers contrasts with discretionary fiscal policies.
Discretionary fiscal policies are deliberate steps taken by the government to stimulate the economy in order to cause the economy to move to full employment and price stability more quickly than it might otherwise.
Discretionary fiscal policies can either be expansionary or contractionary
Expansionary fiscal policy is when the government increases the money supply in the economy either by increasing spending or cutting taxes.
Contractionary fiscal policies is when the government reduces the money supply in the economy either by reducing spending or increasing taxes
Answer:
(A) government economic standards.
Explanation:
A business need to use a relative benchmark. government economic standards are important but is not specific to the a particular business
Ronald reagan believed that decreasing government spending would eventually lead to economic growth.
<h3>What was ronald reagan’s basic belief about economic growth?</h3>
- The four pillars of Reagan's economic policy were to reduce the growth of government spending.
- This policy should lessen the federal income tax and capital gains tax, decrease government regulation, and tighten the money supply in order to reduce inflation.
So we can conclude that decreasing government spending would eventually lead to economic growth is the right answer.
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Answer:
Option C: substitution effect will tend to reduce the demand for labor
Explanation:
Capital is simply anything man made that is used in the production of goods and service. It is that which is used by man to start any business venture or produce goods and services e.g. money(currency),machinery, buildings, stock etc. Labor is mans effort put into work.
Since capital is readily substitutable for labor and when the price of capital falls. We can say that the substitution effect will tend to reduce the demand for labor. If also capital and labor are used in rigidly fixed proportions and the price of capital falls, it can be concluded the substitution and output effects will work.
Answer:
the answer is b: none of the listed options
Explanation:
