When an Economy Expands into an Economic Boom, Automatic Stabilizers

question 89

Multiple Choice

When an economy expands into an economic boom, 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 will remain in balance.
• D) reduce the supply of money and, thereby, retard aggregate demand.

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Definitions:

Modeling

A behavior-therapy technique in which a client observes and imitates a person who approaches and copes with feared objects or situations.

Observational Learning

Observational Learning is a learning process through watching others, retaining the information, and then replicating the behaviors that were observed.

Psychological Disorders

Conditions characterized by abnormal thoughts, feelings, and behaviors, significantly impacting daily functioning and well-being.

Cognitive Therapy

A form of psychotherapy that addresses maladaptive thought patterns, with the goal of changing negative or harmful thought patterns to improve emotions and behaviors.