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:

Positive Effects

Outcomes that are beneficial, favorable, or advantageous in nature, contributing to success, well-being, or the attainment of goals.

Closed Group

A type of group or team with fixed membership where new members can join only when a current member leaves or through a specific selection process.

Negative Characteristics

Traits or qualities deemed undesirable or harmful, often resulting in negative judgments or perceptions by others.

Teamwork

The collaborative effort of a group to achieve a common goal or to complete a task in the most effective and efficient way.