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:

Blood

A vital liquid in humans and many animals that delivers necessary substances such as nutrients and oxygen to the cells and transports metabolic waste products away from those same cells.

Adrenal Glands

Small, triangular glands located on top of both kidneys that produce hormones such as adrenaline and cortisol, which regulate metabolism, immune response, and stress.

Kidneys

Vital organs in vertebrates responsible for filtering blood, removing waste products, and regulating fluid balance.

Testes/Ovaries

The primary reproductive organs in males (testes) and females (ovaries), responsible for producing gametes and sex hormones.