Which of the Following Would Occur as Part of the Automatic

question 45

Multiple Choice

Which of the following would occur as part of the automatic adjustment process in an economy with a recessionary gap?

• A)rising prices
• B)increasing government purchases
• C)decreasing investment
• D)falling tax rates
• E)decreasing wages

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Definitions:

Central Nervous System

The complex system of nerves consisting of the brain and spinal cord that regulates and coordinates body activities.

Parasympathetic Nervous System

The parasympathetic nervous system is part of the autonomic nervous system responsible for conserving energy and bringing the body to a restful state after periods of stress or danger.

Somatic Nervous System

The part of the peripheral nervous system that handles voluntary control of body movements via skeletal muscles, and conveys sensory and motor information to and from the central nervous system.

Cognitive Appraisal

A mental process through which people evaluate the significance and meaning of events and situations for their well-being.