During Recessions,government Expenditure Automatically

question 274

Multiple Choice

During recessions,government expenditure automatically

• A)falls because of programs such as unemployment insurance and Medicaid.
• B)rises because of programs such as unemployment insurance and Medicaid.
• C)falls because of the progressive income tax system.
• D)rises because of the progressive income tax system.

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Definitions:

Supply Curve

A graphical representation of the relationship between the price of a good or service and the amount of it that producers are willing to supply at that price.

Elastic Demand

A condition where the quantity demanded of a good or service significantly changes in response to a change in its price.

Efficiency Loss

The decrease in economic effectiveness that occurs when a good or service does not reach or cannot reach its equilibrium state.

Excise Tax

A type of tax imposed on specific goods, services, or activities, often with the goal of discouraging their use or consumption.