Changes in Expenditures and Taxes That Occur Through Automatic Stabilizers

question 30

Multiple Choice

Changes in expenditures and taxes that occur through automatic stabilizers

• A) shift the aggregate demand curve to the right in the event of an economic expansion.
• B) shift the aggregate demand curve to the left in the event of an economic contraction.
• C) do not shift the aggregate demand curve.
• D) cause a movement up along the aggregate demand curve the event of an economic expansion and a movement down along the aggregate demand curve the event of an economic contraction.

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Definitions:

Oval Window

A membrane-covered opening that leads from the middle ear to the cochlea in the inner ear, vital for the process of hearing.

Ossicles

The three small bones located in the middle ear, named the malleus, incus, and stapes, that play a key role in transmitting sound vibrations to the inner ear.

Middle Ear

The portion of the ear containing the ossicles, which connect the eardrum to the oval window and amplify sound waves.

Cochlea

The fluid-filled, snail-shaped, bony chamber in the inner ear that contains the basilar membrane and its hair cells (the sound receptors).