Automatic Stabilizers Cause

question 35

Multiple Choice

Automatic stabilizers cause:

• A)deeper recessions and more rapid expansions.
• B)deeper recessions and slower expansions.
• C)shallower recessions and slower expansions.
• D)shallower recessions and more rapid expansions.

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Definitions:

Macroeconomics

Study of a nation’s overall economic issues, such as how an economy maintains and allocates resources and how a government’s policies affect the standards of living of its citizens.

Buyers' Incomes

The total earnings or revenue of purchasers, which directly impacts their purchasing power and demand for goods and services in the market.

Pure Competition

Market structure, in which large numbers of buyers and sellers exchange homogeneous products and no single participant has a significant influence on price.