Automatic Stabilizers Are Provisions in the Law Which Create Automatic

question 82

Multiple Choice

Automatic stabilizers are provisions in the law which create automatic ______ in government spending or ______ in taxes when real output declines.

• A)increases; increases
• B)increases; decreases
• C)no change; no change
• D)decreases; decreases

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Definitions:

Expansionary Policy

is a macroeconomic policy aimed at increasing the supply of money within an economy to stimulate economic growth, typically through lowering interest rates and increasing government spending.

Mexican Territory

Refers to both the current nation of Mexico and historical territories governed or claimed by Mexico.

Conflict

A serious disagreement or argument, typically a prolonged one, which may occur between individuals, groups, or nations.

Gunboat Diplomacy

The use of naval power or the threat thereof to influence the behavior of other states, often to achieve foreign policy objectives without actual conflict.