When an Economy Dips into Recession, Automatic Stabilizers Will Tend

question 16

Multiple Choice

When an economy dips into recession, automatic stabilizers will tend to

• A) enlarge the budget deficit (or reduce the surplus).
• B) reduce the budget deficit (or increase the surplus).
• C) ensure that the budget remains in balance.
• D) expand the supply of money and, thereby, stimulate aggregate demand.

Understand the significance of favorable (F) and unfavorable (U) variances in cost management.

Understand the calculation of standard costs including materials, labor, and overhead

Analyze and interpret labor efficiency variances

Analyze and interpret materials quantity variances

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Definitions:

FR 40 Schedule

A type of fixed-ratio schedule in operant conditioning where a response is reinforced only after a specific number of responses have been made, in this case, every 40th response.

Operant Chamber

A laboratory apparatus used to study animal behavior in operant conditioning, allowing systematic presentation of stimuli and recording of responses; also known as a Skinner box.

Delayed Reinforcer

A reinforcement given some time after the desired behavior, which can still effectively strengthen the behavior despite the delay.

Immediate Reinforcer

A reward or consequence that immediately follows a behavior, increasing the likelihood of that behavior being repeated.