Automatic Stabilizers

question 14

Multiple Choice

Automatic stabilizers

• A) make sure that the government budget is balanced every year.
• B) give Congress the complete authority for determining fiscal policy.
• C) are under the control of the Council of Economic Advisers.
• D) force Congress to expedite budget hearings during times of economic hardship.
• E) come into play without the need for new legislation or administrative decisions.

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Definitions:

Foreclosure

The legal process by which a lender takes control of a property, evicts the homeowner, and sells the home after the homeowner fails to make full principal and interest payments on their mortgage.

Matching Principle

An accounting principle that dictates expenses should be reported in the same period as the revenues they help to generate, to ensure financial statements accurately reflect business activities.

Bad Debts

Amounts owed to a company that are considered uncollectible, leading to their classification as a loss.

Bankruptcy

A legal process through which individuals or businesses unable to meet their debt obligations can seek relief from some or all of their debts.