Due to Automatic Stabilizers, When the Nation's Total Income Rises

question 108

Multiple Choice

Due to automatic stabilizers, when the nation's total income rises, government transfer spending

• A) increases and tax revenues decrease.
• B) decreases and tax revenues increase.
• C) and tax revenues decrease.
• D) and tax revenues increase.

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Definitions:

Median

A value that divides a dataset into two equal halves, representing the middle value when the data set is ordered.

StdDev

A measurement that quantifies the amount of variation or dispersion in a set of data values, same as Standard Deviation.

Mean

The mean value of a collection of numbers, obtained by dividing the total sum of the numbers by the quantity of numbers in the collection.

Median

The middle value in a dataset when it is arranged in ascending or descending order, or the average of the two middle values when the dataset has an even number of observations.