The Existence of Automatic Stabilizers Causes

question 146

Multiple Choice

The existence of automatic stabilizers causes:

• A) the size of the budget deficit to remain constant as the economy enters a recession.
• B) the size of any budget deficit to decrease as the economy enters a recession.
• C) the size of any budget deficit to increase as the economy enters a recession.
• D) the size of the budget surplus to increase as the economy enters a recession.

---

Definitions:

Ojibwa Village

A community belonging to the Ojibwa, a Native American people, characterized by its unique cultural, linguistic, and historical attributes.

Pulp Mill

An industrial facility where wood chips are processed into pulp, the raw material for paper production.

Richest Quintile

Refers to the top 20% of the population in terms of income or wealth.

Poorest Quintile

The segment of the population that falls into the bottom 20% in terms of income or wealth, often used in statistical analyses of economic inequality.