If the Economy Is to Have Automatic Stabilizers, When Real

question 139

Multiple Choice

If the economy is to have automatic stabilizers, when real GDP rises:

• A)tax revenues should fall.
• B)tax revenues should rise.
• C)government spending should rise.
• D)government spending should fall.

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Definitions:

Reticular Activating System

A network of neurons located in the brainstem that plays a crucial role in regulating wakefulness and sleep-wake transitions.

Alert

A state of active attention or vigilance that enables an individual to be ready to respond to certain stimuli or situations.

Thalamus

A part of the brain that serves as a relay station for sensory and motor signals to the cerebral cortex.

Touch

A sensation perceived through the skin, involving physical contact and often associated with emotional and social communication.