During a Recession, Rising Transfer Payments and Falling Tax Collections

question 50

Multiple Choice

During a recession, rising transfer payments and falling tax collections
I. help cushion households from the impact of the recession.
II. buffers the fall in real GDP (relative to a situation where transfer payments do not rise and
Tax revenues do not fall) .
III. tend to increase a budget deficit or reduce a budget surplus.

• A) I only
• B) I and II only
• C) II and III only
• D) I, II, and III

---

Definitions:

Strict Religious Views

Rigid adherence to the doctrines and practices of a religion, often leading to a conservative or orthodox lifestyle and mindset.

Opposites

Concepts that are diametrically different from one another, often used in psychology to describe contrasting mental states or behaviors.

Psychic Energy

Psychic Energy refers to the energy within the psyche, utilized by the mind for emotional and psychological processes.

Polarities

Conditions or systems characterized by two opposite attributes or aspects, often found in physics, philosophy, and psychology.