During a Recession,automatic Stabilization Causes the Government Budget Deficit to

question 7

Multiple Choice

During a recession,automatic stabilization causes the government budget deficit to

• A)fall.
• B)increase.
• C)remain stable.
• D)move in the same direction as Y.

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Definitions:

Debt-Paying Ability

A measure of a company's financial capacity to meet its long-term obligations, indicating its financial stability and risk level.

Quick Ratio

A financial metric indicating a company's ability to meet short-term obligations with its most liquid assets, providing insight into financial health.

Current Ratio

A financial metric assessing a firm's capability to settle its short-term obligations using its current assets.

State Unemployment

A government-provided insurance program that offers temporary financial assistance to workers who have lost their jobs.