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Allushta [10]
4 years ago
5

Suppose that Congress enacts a significant tax cut with the expectation that this action will stimulate aggregate demand and pus

h up real GDP in the short run. In​ fact, however, neither real GDP nor the price level changes significantly as a result of the tax cut. This outcome can be explained by all of the​ following, except one. Which one of the following is the​ exception? A. The Ricardian Equivalence Theorem. B. Indirect crowding out. C. Automatic stabilizers. D. The​ Fed's contractionary monetary policy.
Business
1 answer:
CaHeK987 [17]4 years ago
6 0

Answer:

C.

Explanation:

Automatic stabilizers are line items that automatically move the budget balance toward deficit when the output gap is negative and toward surplus when it is positive, even if there are no changes in tax or spending laws.

For example, income tax revenue increase when the economy expands, pushing the balance toward surplus. Or, unemployment benefits increase when the economy is in recession, pushing the balance into deficit.

By adding to aggregate demand during downtums, automatic stabilizers moderate the business cycle.

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What are two ways a consumer may purchase an item on credit other than by hire purchase method?​
NemiM [27]

Answer:

A  person using a credit card. He uses the credit card to pay for goods and services, then he repays the credit card company at a future date.

One type of installment closed-end credit is a car loan. The car company offers the consumer credit to buy the car. The credit does not extend beyond the sales price of the car. In addition, the person pays the credit in installments over a period of time instead of paying it back in one lump sum.

Explanation:

6 0
3 years ago
The difference between errors in the financial statemetns as compared to fraud is
Nataly [62]
Hello there!

There is quite a HUGE difference between these both. When being frauded or making a fraud, this would also be known as stealing money.

But when making a mistake in a statement, they can be things resolved faster than if a person were to steal money. When making this mistake, you could resolve this by explaining why this was a mistake and also what could you do to fix it as well.

Both of these kind of acts are seriously two major different things, they have nothing in common.

4 0
3 years ago
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Vlad1618 [11]

Answer:

Option A is correct

Explanation:

Communication serves the means of inspiring the worker to be proactive in the expansion of the company and making them see reason why, communication and education have four purposes which is informing, means of influencing actions and way of expressing feelings to people.

8 0
4 years ago
What is 5 similarities in market economic and command?
just olya [345]

Answer:

Similarities between Free Market Economy and Command Economy

Both economies have similar economic players including consumers and producers, services and goods and money and labor.

8 0
3 years ago
Which of the following is not one of the main factors that contribute to fraudulent activity?
Reil [10]

The correct answer is choice b, incompatible duties.

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7 0
4 years ago
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