Which of the Following Is an Automatic Stabilizer That Moves

question 203

Multiple Choice

Which of the following is an automatic stabilizer that moves the federal budget toward deficit during an economic contraction and toward surplus during an economic expansion?

• A) Personal income tax revenues.
• B) Corporate income tax revenues.
• C) Unemployment benefits.
• D) All of the above.

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Definitions:

Error

A mistake in reasoning, action, or calculation that may lead to incorrect conclusions or outcomes.

Judgment

The ability to make considered decisions or come to sensible conclusions based on a critical assessment of evidence and reasoning.

Satisficing Heuristic

A decision-making strategy that aims for a satisfactory or adequate result, rather than the optimal solution.

Error

A mistake in action, calculation, opinion, or judgment caused by poor reasoning, carelessness, or insufficient knowledge.