Crowdly

Those with more income tend to pay a higher share of their income in taxes.

Those with less income tend to pay a higher share of their income in taxes.

Those with low incomes pay no taxes.

The Philippines government provides retirement benefits, unemployment benefits, maternity leave benefits, death and funeral benefits, and other benefits. These are examples of:

items that count toward GDP.

consumption.

The marginal tax rate is the:

amount of your income that you pay taxes on.

tax on social security.

amount of tax rebates that you receive at the end of the year.

tax rate you pay if you earn another dollar.

The existence of automatic stabilizers means that government spending will automatically _____ during a recession and automatically _____ during an economic boom, whereas government revenue will automatically _____ during a recession and automatically _____ during an economic boom.

decrease; decrease; increase; increase

increase; increase; decrease; decrease

increase; decrease; decrease; increase

decrease; increase; decrease; increase

the accumulation of all the deficits.

Net government debt is:

total public debt, adjusted for inflation.

the debt that the government owes to individuals, businesses, and other governments both here and abroad.

the debt that the government owes to foreigners, both in the United States and abroad.

If a government is using fiscal policy, this means that it is using _____ and _____ to attempt to stabilize the economy.

interest rates; tax policies

spending; tax policies

bonds; stock markets

spending; interbank loans

Fiscal policy is increased in its effectiveness through:

the multiplier effect.

A budget deficit occurs when:

discretionary spending exceeds automatic spending.

government revenue exceeds government spending.

imports exceed exports.

government spending exceeds government revenue.

In a country with 20 million people aged 15 years and older, 12 million in the labour force, and 11.4 million employed, what is the unemployment rate?

Jamie lost his job when the typewriter factory closed down five years ago and has been unemployed ever since. Nigella lost her job at the day care centre when the economy turned down, but thinks they will rehire her when the economy picks up again. Jamie is _____ unemployed and Nigella is _____ unemployed.

cyclically; structurally

structurally; frictionally

structurally; cyclically

frictionally; frictionally