To Counteract the Effect of Automatic Stabilisers During a Recession

question 130

Multiple Choice

To counteract the effect of automatic stabilisers during a recession and keep the budget balanced, the federal government would need to ________ government spending, or ________ taxes, which would ________ aggregate demand.

• A)increase; decrease; increase
• B)increase; increase; reduce
• C)decrease; decrease; increase
• D)decrease; increase; reduce

---

Definitions:

Abusive Practices

Actions or behaviors that are harmful or injurious, often used in the context of relationships, workplaces, or institutions.

Financial Health

Refers to the state of one's personal financial situation, including the ability to manage expenses, save for the future, and remain free from excessive debt.

Electronic Medical Record

A digital version of a patient’s medical history and treatment records maintained by one healthcare provider over time.

Third-Party Check

A check that is written by one party and made payable to another but is cashed or deposited by a third party.