Automatic Stabilizers Refer to

question 65

Multiple Choice

Automatic stabilizers refer to

• A)the Fed's monetary policy rule.
• B)the self-adjusting nature of a market economy.
• C)the fact that Congress is called into session whenever there is a recession.
• D)taxes and government spending that change automatically whenever the state of the economy changes.
• E)the tendency for changes in inflation to return the economy to potential GDP.

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Definitions:

States' Rights Doctrine

A political doctrine advocating for state power and autonomy, particularly in opposition to federal intervention.

Industrialization

The process by which an economy is transformed from primarily agricultural to one based on the manufacturing of goods, bringing technological innovation and urbanization.

Canals And Railroads

Infrastructure developments that revolutionized transportation and commerce by providing efficient means for the movement of goods and people during the 18th and 19th centuries.

Low Population Density

Areas characterized by a small number of inhabitants relative to the land area, often found in rural or wilderness regions.