Fiscal Policies That Help an Economy in a Recession Without

question 75

Multiple Choice

Fiscal policies that help an economy in a recession without additional actions by policy makers are called

• A) consumption smoothers.
• B) Ricardian equalizers.
• C) automatic stabilizers.
• D) Each of these answers is correct.

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Definitions:

Market Size

The total volume of sales or potential sales of a product or service within a particular market.

Tying Arrangement

A seller’s act of conditioning the sale of a product or service on the buyer’s agreement to purchase another product or service from the seller.

Legality

Conformity with the law or legal statutes, often used to refer to the status of actions, agreements, or policies.

Competition

The rivalry among sellers in the market aiming to achieve such goals as increasing profits, market share, and sales volume by varying the elements of the marketing mix.