Exam 13: Fiscal Policy

Taxes and government expenditures that change in response to changes in the level of economic activity, without need for additional government action, are examples of

Government transfer payments ________ during expansions and ________ during recessions.

On January 1, 2013 the income tax rate for single taxpayers making more than $400,000 per year increased from 35 percent to 39.6 percent. This tax rise has ________ potential GDP.