The federal budget deficit acts as an automatic stabilizer ...

[HCHenry]

The federal budget deficit acts as an automatic stabilizer because
 
  A) Medicaid payments increase during expansionary periods.
  B) unemployment insurance payments decrease during a recession.
  C) food stamp payments increase during expansionary periods.
  D) government tax revenues decrease during a recession.

Question 2

The price elasticity of demand for a good is 0.2 . A 10 percent rise in the price will _______ the total revenue from sales of the good.
 
  A. decrease
  B. increase
  C. decrease the quantity sold with no change in
  D. not change

[jennafosdick]

Answer to Question 1

D

Answer to Question 2

B The total revenue test on page 121 shows that a rise in the price increases the total revenue if demand is inelastic.

[HCHenry]

YES! Correct, THANKS for helping me on my review

[irishcancer18]

Thanks for the timely response, appreciate it