Because of the Automatic Stabilizers, a Decline in the Level

question 127

Multiple Choice

Because of the automatic stabilizers, a decline in the level of economic activity will cause:

• A)a reduction in tax revenues collected.
• B)an increase in government expenditures.
• C)a greater budget deficit.
• D)all of these.

---

Definitions:

Competition-oriented

An approach or strategy focused on understanding, adapting to, and outperforming competitors in the marketplace.

Price Level

The current average cost of goods and services in an economy or specific market, which can affect purchasing power and economic health.

Approaches

The methods or strategies used in dealing with or accomplishing a task or goal.

Book Selling Market

The economic sector involved in the retail and distribution of books to consumers.