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:

Mastery Self-talk

The practice of using positive internal dialogue to enhance self-confidence and performance, especially in challenging situations.

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An irrational thought process leading one to believe that something is far worse than it actually is, often resulting in increased anxiety or worry.

Discounting Positives

A cognitive bias where individuals disregard or minimize positive information, experiences, or attributes about themselves.

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