Automatic Stabilizers Are Changes in ________ That Occur Automatically as Economic

question 125

Multiple Choice

Automatic stabilizers are changes in ________ that occur automatically as economic activity changes.

• A) taxes and transfer payments
• B) unemployment
• C) inflation
• D) the money supply

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Definitions:

International Differences

The variations or disparities between countries and cultures, covering aspects such as legal systems, social norms, economic policies, and cultural practices.

Feudalism

A legal arrangement in preindustrial Europe that bound peasants to the land and obliged them to give their landlords a set part of the harvest. In exchange, landlords were required to protect peasants from marauders and open their storehouses and feed the peasants if crops failed.

Manufacturing Production

The process of converting raw materials or components into finished goods through the use of machinery and labor in factories.

Means of Production

The resources, such as land, factories, and tools, required for the production of goods and services.