Because of Automatic Stabilizers, When Real GDP Decreases

question 217

Multiple Choice

Because of automatic stabilizers, when real GDP decreases

• A) government expenditures increase and tax revenues decrease.
• B) government expenditures equal tax revenues.
• C) the economy will automatically go to full employment.
• D) government expenditures decrease and tax revenues increase.

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Definitions:

Entero

Pertaining to the intestines.

-centesis

A medical term suffix used to describe a procedure involving puncture or penetration of a body cavity to aspirate or remove fluid.

Surgical Puncture

A medical procedure that involves piercing the skin or body tissues with a needle, usually to drain fluid or for diagnostic purposes.

Necrosis

The death of cells or tissues in the body due to disease, injury, or lack of blood supply.