An Automatic Stabilizer Is a Feature of the Economy That

question 149

Multiple Choice

An automatic stabilizer is a feature of the economy that

• A)makes prices "sticky."
• B)reduces its sensitivity to shocks.
• C)maximizes its volatility.
• D)automatically reduces recessionary trends.

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Definitions:

Biological Category

Classifications within biology that organize the vast diversity of life based on shared traits, genetic similarities, and evolutionary history, such as species, genus, and family.

Inductively

Pertaining to a method of reasoning that moves from specific observations to broader generalizations and theories.

Talcott Parsons

An American sociologist known for his contributions to the theory of social action, system theory, and for his role in the development of functionalism.

George Homans

A sociologist known for his work in developing social exchange theory, focusing on the cost-benefit analyses of social interactions.