Automatic Stabilizers

question 73

Multiple Choice

Automatic stabilizers

• A)increase the problems that lags cause in using fiscal policy as a stabilization tool.
• B)are changes in taxes or government spending that increase aggregate demand without requiring policy makers to act when the economy goes into recession.
• C)are changes in taxes or government spending that policy makers quickly agree to when the economy goes into recession.
• D)All of the above are correct.

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Definitions:

Prospective Memory

This facet of memory is about recollecting actions or intentions that one planned to carry out or remember in the future.

Medication

Drugs or substances used to diagnose, treat, or prevent illness and disease, promoting health and well-being.

Poor Health

A state of decreased physical, mental, or social well-being, resulting from disease, injury, or other health conditions.

Evolutionary Perspective

A theoretical approach that explains psychological traits as adaptations evolved to solve recurrent problems in human ancestral environments.