Which of the Following Best Describes the Built-In Stabilizers as They

question 340

Multiple Choice

Which of the following best describes the built-in stabilizers as they function in the United States?

• A) The size of the multiplier varies inversely with the level of GDP.
• B) Personal and corporate income tax collections automatically fall and transfers and subsidies automatically rise as GDP rises.
• C) Personal and corporate income tax collections and transfers and subsidies all automatically vary inversely with the level of GDP.
• D) Personal and corporate income tax collections automatically rise and transfers and subsidies automatically decline as GDP rises.

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Definitions:

United Nations

An international organization founded in 1945 to promote peace, security, and cooperation among countries worldwide.

Agriculture Sectors

Different divisions within the agricultural industry, each focusing on various aspects of crop and livestock production, processing, and distribution.

Productivity

The efficiency of production, measured as the amount of output produced per unit of input used.

Little Capital

A term referring to businesses or investments that require a relatively small amount of money to start or maintain.