Automatic Stabilization Occurs

question 8

Multiple Choice

Automatic stabilization occurs

• A) because government expenditures on goods and services fluctuate with real GDP.
• B) because taxes and transfer payments fluctuate with real GDP.
• C) because monetary policy is effective.
• D) when the Congress makes changes to transfer payment programs.

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Definitions:

Deadly

Capable of causing death or serious harm to living organisms.

Physical Hazard

A condition in the environment or surroundings that has the potential to cause injury or harm to humans, animals, or property.

Hurricane

A type of tropical cyclone characterized by a low-pressure center, thunderstorms, strong winds, and heavy rain, causing significant weather-related events like floods.

Driving

The act of operating and controlling a vehicle, such as a car, truck, or motorcycle, on roads.