Automatic Stabilizers Make Fiscal Policy Easier to Undertake Because They

question 52

Multiple Choice

Automatic stabilizers make fiscal policy easier to undertake because they

• A) allow economists to formulate rules so that the economy is perpetually stable.
• B) enable policy makers to prescribe public works programs during inflationary periods since expenditures for unemployment and welfare have correspondingly decreased.
• C) act to increase spending when the economy turns down and to decrease spending when the economy overheats.
• D) eliminate the causes of unemployment and inflation experienced by the economy.
• E) give the president the complete authority for determining stabilization policy.

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Definitions:

Market Segments

Subsets of a market made up of people or organizations with one or more characteristics that cause them to demand similar product and/or services based on qualities of those products such as price or function.

Marketing Mix

The combination of factors that can be controlled by a company to influence consumers to purchase its products, including product, price, place, and promotion.

Market Fads

Short-lived trends or crazes in the marketplace that can suddenly explode in popularity but fade away just as quickly.

SWOT Analysis

A strategic planning tool that assesses a company's strengths, weaknesses, opportunities, and threats.