Author Question: During a recession, total public assistance payments and unemployment compensation payments ... (Read 91 times)

Awilson837 · **on:** Jun 30, 2018

During a recession, total public assistance payments and unemployment compensation payments automatically increase while income taxes automatically decrease. Which of the following best describes the effect of these changes on aggregate demand?
a. Aggregate demand will be less than it would be without these automatic stabilizers.
b. Aggregate demand will be the same as it was before the recession.
c. Aggregate demand will be more than it would be without these automatic stabilizers.
d. Aggregate demand will be greater than it was before the recession.

Question 2

Banks that operate under Islamic law are no longer considered intermediaries between borrowers and lenders because they are not allowed to charge interest.
a. True
b. False
Indicate whether the statement is true or false