Automatic Stabilizers Create ________ During Recessions from Increased Government Spending

question 15

Multiple Choice

Automatic stabilizers create ________ during recessions from increased government spending on welfare and unemployment insurance, and reduced tax revenues, and create _________ during peak growth periods of the economy from reduced government welfare spending and increased tax revenues.

• A) fiscal stimulus, fiscal contraction
• B) fiscal stimulus, fiscal stimulus
• C) fiscal contraction, fiscal stimulus
• D) fiscal contraction, fiscal contraction

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Definitions:

Implicit Messaging

Communication that occurs through nonexplicit means, often involving nuanced or indirect cues, as opposed to straightforward, direct messaging.

Future Orientation

The degree to which a culture chooses future rather than immediate results.

High-assertion Culture

A workplace culture that encourages assertiveness, straightforward communication, and standing firm on one's decision or opinion.

Collectivism

A social and economic ideology that emphasizes the priority of group goals over individual goals and the importance of cohesion within social groups.