Automatic Stabilizers Are Provisions in the Law That Create Automatic

question 1

Multiple Choice

Automatic stabilizers are provisions in the law that create automatic ________ in government spending or ________ in taxes when real output declines.

• A)increases; increases
• B)increases; decreases
• C)no change; no change
• D)decreases; decreases

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Definitions:

Personal Distress

A negative emotional response, such as anxiety or fear, that stems from perceiving another person's suffering or from being in a stressful situation oneself.

Cognitive Confusion

A state of being perplexed or unclear, often resulting from a disruption in one’s mental faculties or the presence of conflicting thoughts and feelings.

Maladaptive Behaviour

Actions or tendencies that are counterproductive to oneself or to one’s ability to adapt or interact successfully within the environment.

Personal Distress

A psychological discomfort or anguish caused by exposure to others’ suffering or emergency situations, leading to a desire to alleviate that suffering.