Automatic Stabilizers Reduce Fluctuations in GDP by

question 2

Multiple Choice

Automatic stabilizers reduce fluctuations in GDP by

• A) eliminating spending shocks
• B) increasing the amount of spending each year
• C) reducing the additional spending that occurs in each round of the multiplier
• D) increasing saving
• E) reducing the need for government involvement in the economy

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Definitions:

Compliments

Positive or flattering comments or gestures that show appreciation, admiration, or praise for someone's qualities, achievements, or performance.

Role Stress

The stress experienced when an individual faces difficulties fulfilling the expectations associated with their role.

Conflicting Expectations

Refers to situations where there are incompatible or opposing expectations placed on an individual or group, often leading to stress or uncertainty.

Communication

The evoking of a shared or common meaning in another person.