Structures in the Economy Increase Aggregate Demand When the Economy

question 12

Multiple Choice

Structures in the economy increase aggregate demand when the economy is in recession and decrease aggregate demand when the economy is inflationary are known as:

• A) tax transfers.
• B) inventory investment.
• C) accelerators.
• D) depreciation.
• E) automatic stabilizers.

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Definitions:

Decreased Appetite

A reduction in the desire to eat which can result from psychological, medical, or environmental factors.

High Level Insulin

An increased amount of insulin, a hormone produced by the pancreas to regulate blood sugar levels, which can indicate conditions like hyperinsulinemia.

Appetite

The natural desire or craving for food, which can be influenced by both physiological and psychological factors.

Glucose Stored

Glucose that is accumulated and conserved in the body, mainly in the liver and muscles, for future energy demands.