Which of the Following Is Not a Reason Why the Australian

question 75

Multiple Choice

Which of the following is not a reason why the Australian economy has generally been more stable since 1950 than before that time?

• A)Goods have become a larger fraction of GDP and services have become a smaller fraction of GDP.
• B)The government has actively pursued economic policy to combat recessions and prolong expansions.
• C)Unemployment benefits and other government programs curtail the decline in spending that occurs during a recession.
• D)Services have become a larger fraction of GDP and goods have become a smaller fraction of GDP.

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Definitions:

Automatic Stabilizer

Measures and plans intended to balance the ups and downs in a country's economy without needing more government involvement.

Welfare Payments

Government-provided financial aid to individuals or families, intended to support those who are unable to support themselves.

Income Tax

A tax levied by governments on individuals' or entities' income, including earnings from employment, business profits, and investments.

Automatic Stabilizers

Economic policies and programs, such as unemployment insurance and taxation, designed to automatically adjust to help stabilize an economy.