When an Economy Dips into Recession, Automatic Stabilizers Will

question 94

Multiple Choice

When an economy dips into recession, automatic stabilizers will:

• 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:

Dialogue

A conversation or exchange of ideas aimed at reaching understanding, resolving differences, or exploring possibilities.

Competitive Strategy

A method or plan chosen to bring about a desired future, such as achieving a competitive advantage in the market or industry.

Substance Outcomes

The tangible and measurable results achieved following a negotiation or decision-making process.

Relationship Outcomes

The effects or consequences of interactions and negotiations on the interpersonal relationships between the involved parties.