Structures in the Economy Increase Aggregate Demand When the Economy

question 12

Multiple Choice

Structures in the economy increase aggregate demand when the economy is in recession and decrease aggregate demand when the economy is inflationary are known as:

• A) tax transfers.
• B) inventory investment.
• C) accelerators.
• D) depreciation.
• E) automatic stabilizers.

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Definitions:

Real-world Events

Occurrences or developments that happen in the physical world, beyond theoretical or hypothetical situations.

Assumptions

Premises or conditions accepted as true without proof, used as bases for reasoning or an argument.

Secondary Effects

The indirect impacts that follow the primary effects of a decision or action in economics, often unforeseen or unintended.

Mediocre Economists

Economists who may possess average skills or lack the influence of leading thinkers in their field.