Government Spending Rising During a Recession Is an Example of

question 234

Multiple Choice

Government spending rising during a recession is an example of

• A) an automatic destabilizer.
• B) an automatic stabilizer.
• C) discretionary economic policy.
• D) policy lags.

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Definitions:

Company's Profit

The financial gain made by a business after subtracting all expenses, taxes, and costs from total revenue.

Defined Benefit Plan

A type of pension plan where the benefits that the employee will receive upon retirement are predefined, usually based on factors like salary and years of service.

Money Purchase Plan

A type of defined contribution retirement savings plan where employer and employee contributions are fixed.

Canada Pension Plan

A mandatory public retirement insurance program in Canada, providing income to retired workers.