The Existence of Automatic Stabilizers Will

question 115

Multiple Choice

The existence of automatic stabilizers will

• A) reduce the recognition lag of discretionary fiscal policy.
• B) eliminate recessions.
• C) reduce the size of recessionary and inflationary gaps.
• D) cause the effects of shocks to aggregate demand to have a larger effect on GDP.

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Definitions:

Nonrenewable Resource

Resources that cannot be replenished naturally within a human lifespan, such as fossil fuels and minerals.

Electronic Devices

Equipment that uses electrical power to achieve a particular function, including devices like smartphones and laptops.

Sustainability

The ability to maintain or improve environmental, social, and economic conditions for future generations through responsible and careful use of resources.

Biodiversity

The variety of life in the world or in a particular habitat or ecosystem.