Which of the Following Is True of Automatic Stabilizers

question 1

Multiple Choice

Which of the following is true of automatic stabilizers?

• A)They require ongoing decisions about government purchases and taxation to promote full employment and price stability.
• B)They include the unemployment compensation program.
• C)They tend to stimulate aggregate demand when the economy is experiencing an expansionary gap.
• D)They include tax cuts passed by Congress to ease a current recession in an economy that has a proportional income tax.
• E)They include government purchases of goods and services requiring Congressional approval.

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Definitions:

DSM-5

The fifth edition of the Diagnostic and Statistical Manual of Mental Disorders, a widely used handbook for diagnosing mental disorders.

Hair-Pulling Disorder

also known as trichotillomania, a mental health disorder characterized by an irresistible urge to pull out one’s hair, leading to noticeable hair loss.

Skin-Picking Disorder

A disorder characterized by recurrent picking at scabs or places on the skin, creating significant lesions that often become infected and cause scars.

Hoarding

A compulsive disorder characterized by the inability to throw away unneeded possessions (such as trash).