When an Economy Dips into Recession, Automatic Stabilizers Will Tend

question 16

Multiple Choice

When an economy dips into recession, automatic stabilizers will tend to

• A) enlarge the budget deficit (or reduce the surplus).
• B) reduce the budget deficit (or increase the surplus).
• C) ensure that the budget remains in balance.
• D) expand the supply of money and, thereby, stimulate aggregate demand.

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Definitions:

Industrial Workers of the World

An international labor union founded in 1905, known for its radical approach to worker's rights and socialism.

Primary Goals

The main or fundamental objectives that an individual, group, or organization aims to achieve.

President Roosevelt

Refers usually to Franklin D. Roosevelt, the 32nd President of the United States, known for his New Deal policies aimed at recovering from the Great Depression.

Labor Disputes

Conflicts between employees (often represented by unions) and their employers regarding working conditions, wages, and other employment issues.