Automatic Stabilizers Stabilize the Level of Real GDP Because

question 92

Multiple Choice

Automatic stabilizers stabilize the level of real GDP because:

• A) Congress quickly changes spending and tax revenue.
• B) federal expenditures and tax revenues change as the level of real GDP changes.
• C) the spending and tax multiplier are constant.
• D) wages are controlled by the minimum wage law.

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Definitions:

Poisson Distribution

A probability distribution that models the number of times an event occurs within a fixed interval of time or space.

Incidence

The frequency or rate at which new cases of a particular condition occur in a specified population over a given period of time.

Chronic Disorder

A long-lasting condition that can be controlled but not cured, often requiring ongoing management and treatment.

Poisson Probability Distribution

A discrete frequency distribution that expresses the probability of a given number of events occurring in a fixed interval of time or space.