The Presence of the Automatic Stabilizers Means an Increase in the Budget

question 50

True/False

The presence of the automatic stabilizers means an increase in the budget deficit will be automatically experienced during an economic expansion whereas a budget surplus will be automatically experienced during a recession.

---

Definitions:

Transfer Price

The price at which goods and services are sold between divisions within the same company, used for internal sales and profit allocation.

Variable Cost

Costs that change in proportion to the goods or services that a business produces.

General Transfer-Pricing Rule

A framework or methodology used to determine the price for goods or services transferred between divisions or subsidiaries of the same company.

Goal Congruence

A condition in which the goals of the organization's different members or departments align and support the overall objectives of the organization.