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:

Stomach Enzyme

Biological catalysts within the stomach that aid in the breakdown and digestion of proteins.

Alcohol Dehydrogenase

An enzyme that breaks down alcohol in the stomach before it enters the blood.

Delirium Tremens

A severe form of alcohol withdrawal involving sudden and severe mental or nervous system changes.

Withdrawal Reactions

Physical or emotional symptoms that occur after reducing or ceasing intake of a substance that was used regularly.