Automatic Stabilisers

question 24

Multiple Choice

Automatic stabilisers

• A)have no effect on the magnitude of the government expenditure multiplier.
• B)reduce the government expenditure multiplier to zero.
• C)increase the magnitude of the government expenditure multiplier.
• D)decrease the magnitude of the government expenditure multiplier.
• E)increase the magnitude of the tax multiplier.

---

Definitions:

Sales

The activities involved in selling products or services, often measured by the amount of revenue generated from transactions with customers.

Cost of Goods Sold

An accounting term for the direct costs attributable to the production of the goods sold in a company, including both raw materials and labor expenses.

Aggregate Planning

Strategic planning of overall output levels and resources to effectively meet demand over a period, typically months, considering various constraints and objectives.

Efficiency

The ability to achieve a goal or perform a task with the minimum expenditure of time and resources.