When Output Deviates from Potential GDP,automatic Stabilizers Work to Push

question 29

Multiple Choice

When output deviates from potential GDP,automatic stabilizers work to push the economy:

• A)in the same direction that correctly timed and formulated discretionary policy would.
• B)in the opposite direction that correctly timed and formulated discretionary policy would.
• C)in unpredictable ways,causing a need for discretionary policy.
• D)can bring the economy even further from its long-run equilibrium.

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Definitions:

Default Judgment

A judgment entered by a court against a defendant who has failed to appear in court to answer or defend against the plaintiff’s claim.

Affirmative Defense

A response to a plaintiff’s claim that does not deny the plaintiff’s facts but attacks the plaintiff’s legal right to bring an action. An example is the running of the statute of limitations.

Negligence

The failure to exercise the standard of care that a reasonable person would exercise in similar circumstances.

Electronic Discovery

The process by which electronic data is sought, located, secured, and searched with the intent of using it as evidence in a legal case.