During an Economic Expansion, Automatic Stabilizers

question 12

Multiple Choice

During an economic expansion, automatic stabilizers:

• A)reduce both budget surpluses and deficits.
• B)reduce a budget surplus or increase a deficit.
• C)reduce a budget deficit or increase a surplus.
• D)increase both budget surpluses and deficits.

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Definitions:

Productive Facilities

Physical locations such as factories or offices where economic goods are produced or services are provided, utilizing labor, machinery, and equipment.

Land Improvements

Enhancements to a plot of land such as landscaping, parking lots, and fences that add value but are subject to depreciation.

Land Account

A financial ledger entry that represents the value of land owned by an entity.

Salvage Value

The estimated resale value of an asset at the end of its useful life, often considered in depreciation calculations.