During Recessions, How Do Automatic Stabilizers Change Government Deficit and Taxes

question 35

Multiple Choice

During recessions, how do automatic stabilizers change government deficit and taxes?

• A) Both deficit and taxes increase.
• B) Both deficit and taxes decrease.
• C) Deficit increases and taxes decrease.
• D) Deficit decreases and taxes increase.

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Definitions:

Highly Aroused

A state of heightened physiological activity, often associated with increased readiness or alertness.

Reticular Formation

A network of nerve pathways in the brainstem involved in consciousness, the sleep-wake cycle, and filtering incoming stimuli to discriminate irrelevant background stimuli.

Blood Flows

The continuous movement of blood through the circulatory system, delivering essential nutrients and oxygen to the body and removing waste products.

fMRI

Functional Magnetic Resonance Imaging, a non-invasive neuroimaging technique that measures brain activity by detecting changes associated with blood flow.