Built-In Stabilizers

question 36

Multiple Choice

Built-in stabilizers:

• A)intensify the business cycle.
• B)reduce the size of the multiplier.
• C)increase the government's deficit during a recession.
• D)are a part of discretionary fiscal policy.

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Definitions:

Emotional States

Temporary conditions of feeling or affect that influence individuals' perceptions, decision-making processes, and behaviors.

Pleasure And Arousal

These terms refer to emotional states that can influence consumer behavior, with pleasure relating to feelings of happiness and satisfaction, and arousal to the level of excitement and stimulation.

Consumption Environment

The setting or surroundings in which consumers engage with products or services, influencing purchasing behaviors.

Heuristic Processing

A mental shortcut that allows individuals to solve problems and make judgments quickly and efficiently, often relying on simple rules of thumb or educated guesses.