The Existence of Automatic Stabilizers Causes

question 52

Multiple Choice

The existence of automatic stabilizers causes:

• A) the size of any budget deficit to decrease as the economy enters a recession.
• B) the effects of a given change in autonomous expenditures on output to be larger than they would be if there were no automatic stabilizers.
• C) no change in the size of the budget deficit as the economy enters a recession.
• D) the size of any budget deficit to increase as the economy enters a recession.

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Definitions:

Cutting Out

The act of removing or excising a piece of material or a part of a structure.

Excision

A surgical procedure involving the removal of tissue, an organ, or other body part.

Combining Form

A combining form is a form of a word that only appears as part of another word, usually used in the formation of medical and scientific terms.

Suffix

A set of letters added to the end of a word to alter its meaning or specify its grammatical function.