The following diagram shows one indifference curve representing the preferences for goods X and Y for one consumer. 
What is the marginal rate of substitution between points A and B?
Definitions:
Automatic Stabilizers
Economic policies and programs that automatically adjust to temper the fluctuations in an economy, such as unemployment insurance and progressive taxes.
Annual Deficit
The shortfall that occurs when a government's expenditures exceed its revenues within a one-year period.
Economy Contracting
A phase where there is a decrease in the level of economic activity within a country, often indicated by a reduction in spending, investment, and GDP growth.
Trade Deficits
A situation where a country's imports of goods and services exceed its exports within a specified time period.
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