Automatic Stabilizers

question 271

Multiple Choice

Automatic stabilizers

• A) work counter-cyclically to moderate the business cycle.
• B) often make any downturn in the economy worse.
• C) must be determined by the Congress in each budget.
• D) are never altered.

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Definitions:

Infrequent

Occurring or happening rarely or at wide intervals.

Extraordinary Item

An unusual or infrequent event that is not part of the normal activities of a business and must be reported separately in the financial statements.

Discontinued Operations

Parts of a company's core business or subsidiaries that have been sold, disposed of, or abandoned and are reported separately from continuing operations in financial statements.

Comparative Income Statement

A financial statement that presents the revenues, expenses, and net income for multiple periods to assess a company's financial performance over time.