During Expansions, What Do Automatic Stabilizers Make Government Expenditures and Taxes

question 120

Multiple Choice

During expansions, what do automatic stabilizers make government expenditures and taxes do?

• A) They make government expenditures and taxes fall.
• B) They make government expenditures and taxes rise.
• C) They make government expenditures rise and taxes fall.
• D) They make government expenditures fall and taxes rise.

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Definitions:

Industrialization

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

Natural Forces

Natural forces refer to the fundamental phenomena or energies inherent in the natural world, such as gravity, electromagnetism, and the forces driving climate and geological changes.

Arithmetically

Pertaining to or related to arithmetic, the basic branch of mathematics dealing with the properties and manipulation of numbers.

Geometrically

Pertains to or is characterized by the principles of geometry, involving shapes, sizes, and the relative positions of figures.