Automatic Fiscal Stabilizers ________ the Impact of Demand or Supply

question 88

Multiple Choice

Automatic fiscal stabilizers ________ the impact of demand or supply shocks on the economy since government's net tax revenues ________ during booms and ________ during recessions.

• A)magnify; increase; decrease
• B)magnify; decrease; increase
• C)dampen; increase; decrease
• D)dampen; decrease; increase
• E)do not affect; are constant; are constant

---

Definitions:

Muscular Strength

The maximal force that a muscle or group of muscles can exert in a single effort.

Sensory Keenness

The heightened ability to perceive stimuli through the senses.

Cardiac Output

The volume of blood the heart pumps through the circulatory system in one minute, an important measure of heart function and efficiency.

Information-Processing Speed

The rate at which an individual can process and react to the information they receive.