Because Automatic Stabilizers Lower Transfer Payments and Raise Tax Receipts

question 109

Multiple Choice

Because automatic stabilizers lower transfer payments and raise tax receipts as an economy recovers from a recession, they:

• A)slow down the pace of an economic recovery.
• B)increase the pace of an economic recovery.
• C)do not affect the pace of an economic recovery.
• D)accelerate the recovery from a recession until inflation starts to develop, at which point they slow the recovery.

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Definitions:

Hourly Wage

The amount of money paid for each hour of work.

Uglifruits

This term does not represent a known economic concept. NO.

Consumption Proportions

This term refers to the ratio in which different goods or services are consumed by individuals or within an economy.

Price Change

A fluctuation in the market price of a good or service over a specific period.