An Automatic Stabilizer

question 126

Multiple Choice

An automatic stabilizer

• A)keeps taxes and government spending in a constant ratio to each other throughout the business cycle
• B)increases taxes relative to government spending during contractions and decreases it in expansions
• C)decreases taxes relative to government spending during contractions and increases it in expansions
• D)increases taxes relative to government spending throughout the business cycle
• E)decreases taxes relative to government spending throughout the business cycle

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Definitions:

Annual Report

A comprehensive report on a company's activities, financial performance, and strategy throughout the preceding year.

Convenience Sample

A group of subjects to whom the researcher has easy access; not a random sample.

Quota Sample

A sampling method where the sample is designed to include individuals representing certain characteristics in proportions that match the general population.

Maximum Amount

The highest quantity, limit, or degree of something that is possible or allowed.