Automatic Stabilizers Tend to Exaggerate the Severity of Business Cycles

question 11

True/False

Automatic stabilizers tend to exaggerate the severity of business cycles.

---

Definitions:

Diversity Of Opinion

The presence of varying viewpoints and perspectives within a group or discussion.

Chief Executive Officer

The highest-ranking executive in a company or organization, responsible for making major corporate decisions, managing the overall operations and resources, and serving as the main point of communication between the board of directors and corporate operations.

Risky Shift

A tendency for groups to take greater risks than the same individuals (on average) would have decided to take individually.

Group Polarization

The tendency of a group to make decisions that are more extreme than the initial inclination of its members, following group discussions.