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:

Surplus

The amount by which revenue exceeds expenses in a given period, indicating a positive financial state.

Share Option

A right granted by a company to its employees or executives to purchase shares in the company at a preset price, often used as part of compensation packages.

Exercise Price

The specified price at which an option holder can buy (call) or sell (put) the underlying security or commodity.

Obligation

A duty or responsibility to act or perform in a certain way, often legally binding, resulting from a contract, law, or moral responsibility.