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:

Profits

The financial gain obtained when the revenue earned from business activities exceeds the expenses, costs, and taxes needed to sustain the activity.

Jeweler

A person or business that designs, makes, sells, or repairs jewelry.

Clothing Store

A retail establishment that sells garments and apparel for men, women, and children.

Utility

Utility refers to the total satisfaction received from consuming a particular good or service.