The Effect of Automatic Stabilizers on the Business Cycle Is

question 136

Multiple Choice

The effect of automatic stabilizers on the business cycle is to:

• A)make upswings larger and downswings smaller.
• B)make upswings smaller and downswings larger.
• C)make both upswings and downswings smaller.
• D)eliminate fiscal drag.
• E)make both upswings and downswings larger.

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Definitions:

Acquiescent

Displaying agreement or compliance without protest or enthusiasm.

Incrementalism

Systematic progression of a relationship through each of the de-escalation stages.

Bilateral Dissolution

Refers to the mutual agreement between two parties to end or dissolve a relationship or agreement.

Unhappiness

A state of dissatisfaction or sadness, often resulting from unmet expectations or difficulties in one’s life or surroundings.