During an Expansion, Which of the Following Occur Because of Automatic

question 61

Multiple Choice

During an expansion, which of the following occur because of automatic stabilizers?
I. Income tax revenues tend to rise.
II. Government transfer payments tend to rise.
III. The government's budget deficit tends to fall or its budget surplus tends to rise.
IV. They tend to amplify the rise in real GDP.

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

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Definitions:

Behavior Trait

A consistent pattern of behavior, thoughts, or emotions that distinguish one individual from another.

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Actions or behaviors that originate from desires or impulses outside an individual's conscious awareness.

Positive Psychology

A branch of psychology focusing on the study of positive human functioning and flourishing on multiple levels, including the biological, personal, relational, institutional, cultural, and global dimensions of life.

Humanistic Psychology

A psychological perspective that emphasizes individual potential for growth and the importance of human values, creativity, and self-fulfillment.