When an Economy Dips into Recession, Automatic Stabilizers Will

question 94

Multiple Choice

When an economy dips into recession, automatic stabilizers will:

• A) enlarge the budget deficit (or reduce the surplus).
• B) reduce the budget deficit (or increase the surplus).
• C) ensure that the budget remains in balance.
• D) expand the supply of money and, thereby, stimulate aggregate demand.

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Definitions:

Deindividuation

A psychological state characterized by reduced self-awareness, diminished personal responsibility, and altered behavior that can occur within group contexts.

Mob Behavior

The way individuals act or behave when they are part of a large group, often leading to actions that individuals would not perform alone.

Nonconformity

The act or practice of not adhering to established societal norms, rules, or laws, often resulting in unique or unconventional behavior.

Altruistic Behavior

Actions intended to help others without expecting anything in return.