Automatic Stabilizers "Lean Against the Prevailing Wind" of the Business

question 86

Multiple Choice

Automatic stabilizers "lean against the prevailing wind" of the business cycle because:

• A) wages are controlled by the minimum wage law.
• B) federal expenditures and tax revenues change as the level of real GDP changes.
• C) the spending and tax multipliers are constant.
• D) they include the power of special interests.

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Definitions:

Unconscious Prejudice

Refers to biases or attitudes towards others that individuals are not consciously aware of but can influence their behavior and decisions.

Court Rulings

Judicial decisions made by a court following a litigation process.

Unconscious Bias

Refers to the attitudes or stereotypes that affect our understanding, actions, and decisions in an unconscious manner.

Discriminate

To make distinctions between things or people, which can be benign (as in discerning tastes) or illegal/morally problematic when based on prejudice against certain groups.