Automatic Stabilizers Are Policies That

question 19

Multiple Choice

Automatic stabilizers are policies that:

• A) respond to fluctuations in the economy without requiring elected government leaders to take any new actions.
• B) require employers to maintain employment levels regardless of economic conditions.
• C) keep government spending and taxes at a consistent, stable level to stabilize the economy.
• D) raise the taxes during recessions and lower them during inflation.

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Definitions:

Need For Achievement

A psychological trait characterized by a strong desire to accomplish difficult tasks, achieve high standards, and meet personal goals.

Over-Reward Inequity

Occurs when an individual perceives that they are receiving more rewards (pay, recognition, benefits) in comparison to others for the same amount of effort or contribution.

Outcomes-To-Inputs Ratio

A principle in equity theory that compares the rewards (outcomes) one receives from a job relative to the effort (inputs) one has invested.

Sensitives

Individuals or entities that are highly responsive or susceptible to external stimuli or changes in their environment.