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Wyatt Brink
on Nov 30, 2024

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During the recession in 2001,President Bush extended the effectiveness of the automatic stabilizers by

A) giving tax credits to companies.
B) increasing transfer payments to needy.
C) permitting unemployed to receive for an additional 13 week period.
D) increasing the excise expensive automobiles.

Automatic Stabilizers

Tools in fiscal policy that adjust spending and taxes automatically to buffer against economic cycles, reducing the effects of inflation and recession.

Tax Credits

Amounts subtracted directly from the taxes owed to the government, incentivizing certain economic activities or investments.

Transfer Payments

Non-compulsory payments made by the government to individuals or other entities, without a direct exchange of services or goods; examples include pensions and subsidies.

  • Apprehend the duties and effects of automatic stabilizers in the economic environment, including their pros and the way they work through economic ups and downs.
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Zaria StevensonDec 01, 2024
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