The Advantage of Automatic Stabilizers Is That They

question 235

Multiple Choice

The advantage of automatic stabilizers is that they

• A) help to balance the budget.
• B) reduce the size of the net public debt.
• C) reduce the fluctuations in the business cycle.
• D) help reduce the inflation rate.

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Definitions:

Higher Salary

An increased amount of money paid for employment, often reflecting higher levels of responsibility, education, or skill.

Worker Productivity

A measurement of the efficiency and effectiveness with which workers accomplish tasks, often gauged as output per unit of input, such as hours worked.

Real Earnings

Earnings adjusted for differences in the general level of prices across time periods or geographic areas. When real earnings are equal, the same bundle of goods and services can be purchased with the earnings.

Strong Unions

represent organizations that negotiate with employers on behalf of employees regarding wages, work conditions, and benefits.