Automatic Stabilizers

question 52

Multiple Choice

Automatic stabilizers

• A) increase the problems that lags cause in using fiscal policy as a stabilization tool.
• B) are changes in taxes or government spending that increase aggregate demand without requiring policymakers to act when the economy goes into recession.
• C) are changes in taxes or government spending that policymakers agree to when the economy goes into recession.
• D) are part of discretionary fiscal policy.

---

Definitions:

Punctuated Equilibrium

A theory in evolutionary biology that suggests changes occur in rapid, short bursts followed by long periods of stability.

Midpoint Transition

A phase or moment of change in the middle of a process or project, often involving a shift in strategy, focus, or objectives.

Behavioural Scientists

Researchers and practitioners who study the interactions and behaviors of humans and animals within their environments.

Organizational Charts

Visual representations that illustrate the structure of an organization, showing relationships and ranks of jobs.