Automatic Stabilizers Are Government Programs That

question 66

Multiple Choice

Automatic stabilizers are government programs that:

• A) exaggerate the ups and downs in aggregate demand without legislative action.
• B) bring expenditures and revenues automatically into balance without legislative action.
• C) shift the budget toward a deficit when the economy slows but shift it toward a surplus during an expansion.
• D) increase tax collections automatically during a recession.

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Definitions:

Psychosocial Theory

A framework that explores the interaction between psychological developments and social environments across an individual's lifespan.

Emergent Norm Theory

A theory in sociology suggesting that norms and behaviors in crowds and social groups emerge spontaneously and are negotiated among members, rather than being inherent or fixed.

Convergence Theory

A concept in sociology that suggests differences among societies will decrease over time due to globalization, leading to similar social, political, and technological practices.

Contagion Theory

A sociological theory that suggests ideas and emotions can spread through populations like infectious diseases.