An Automatic Stabilizer

question 113

Multiple Choice

An automatic stabilizer:

• A)increases inflationary pressure during expansions.
• B)Increases the drop in disposable income during recessions and increases the jump in disposable income during expansions.
• C)reduces the drop in disposable income during recessions and reduces the jump in disposable income during expansions.
• D)increases tax revenue relative to government spending throughout the business cycle.
• E)decreases tax revenue relative to government spending throughout the business cycle.

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Definitions:

Disadvantaged Populations

Groups of individuals who face significant obstacles that inhibit their ability to access essential services, resources, or opportunities, often due to economic, social, or physical factors.

Ethical

Concerning or related to ethics or the rules of right and wrong behavior.

Physical Disabilities

Impairments that significantly affect one's ability to move or interact with the physical environment, possibly including mobility issues, dexterity problems, or physical health disorders.

Behavioral Problems

Refers to actions or behaviors that are disruptive, harmful, or outside of socially acceptable norms, often causing negative consequences for the individual or others.