Automatic Stabilizers

question 52

Multiple Choice

Automatic stabilizers

• A) increase the problems that lags cause in using fiscal policy as a stabilization tool.
• B) are changes in taxes or government spending that increase aggregate demand without requiring policymakers to act when the economy goes into recession.
• C) are changes in taxes or government spending that policymakers agree to when the economy goes into recession.
• D) are part of discretionary fiscal policy.

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Definitions:

Naturalistic Observations

A detailed study method where behavior is observed in natural settings without intervention or manipulation by the observer.

Case Studies

Comprehensive examinations of individual instances, locations, events, or entities to explore and analyze complex issues in detail.

Social Desirability

A bias in which respondents to a survey may answer questions in a manner that will be viewed favorably by others.

Social Loafing

The phenomenon where individuals exert less effort when working in a group compared to when working alone.