Automatic Stabilizers

question 151

Multiple Choice

Automatic stabilizers

• A) are government programs that automatically implement countercyclical monetary policy in response to economic conditions.
• B) must be approved by Congress every time they are to be implemented.
• C) experience recognition lags.
• D) experience implementation lags.
• E) are government programs that automatically implement countercyclical fiscal policy in response to economic conditions.

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Definitions:

Internal Control

Mechanisms or procedures implemented by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Hot Stove Rule

A principle in management and discipline that suggests consequences should be immediate, consistent, impersonal, and close to the action of misconduct, akin to touching a hot stove.

Progressive Discipline

The process of tying reprimands to the severity and frequency of misbehaviour.