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:

Subsequent Measurement

Refers to the accounting processes involved in measuring the value of financial assets and liabilities after their initial recognition.

Foreign Currency Transactions

Transactions that involve the exchange of one currency for another, often occurring in businesses that engage in international operations.

Foreign Exchange Differences

The discrepancies arising when converting foreign currency transactions to a company's functional currency, due to changes in exchange rates.

Reporting Period

A reporting period is the span of time covered by a set of financial statements or reports, typically a quarter or a year.