Automatic Stabilizers Smooth Fluctuations in the Economy Because They Produce

question 218

Multiple Choice

Automatic stabilizers smooth fluctuations in the economy because they produce changes in the government's budget that

• A)reinforce changes in GDP.
• B)help offset changes in GDP.
• C)produce a cyclically adjusted budget.
• D)produce a standardized budget.

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Definitions:

Contribution

The right of insurers (more than one) to share a loss where the policies so provide.

Insurers

Companies or entities that provide insurance coverage to individuals, businesses, or other organizations in exchange for premiums.

Co-insurance

An insurance arrangement where the risk is shared between the insurer and the insured, often requiring the insured to pay a specified percentage of the costs of a claim.

Utmost Good Faith

A principle requiring all parties in an agreement or contract to act honestly and not mislead or withhold critical information.