One Benefit of Automatic Stabilizers Is That They

question 120

Multiple Choice

One benefit of automatic stabilizers is that they

• A) decrease consumption during a recession below what it would otherwise be
• B) make GDP more volatile
• C) cause the cyclical deficit to fall during a recession
• D) increase consumption during a recession above what it would otherwise be
• E) increase consumption during an expansion above what it would otherwise be

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Definitions:

Variance Analysis

The process of examining differences between planned financial outcomes and actual financial performance.

Ratio Analysis

A quantitative analysis of information contained in a company's financial statements, used to evaluate performance, liquidity, profitability, and solvency.

Financial Statement Items

The individual line entries that make up financial statements such as the balance sheet, income statement, and statement of cash flows, detailing financial performance and position.

Financial Statement Analysis Report

A document that reviews and evaluates a company's financial statements, providing insights into its performance, financial condition, and cash flow.