If Aggregate Output Is Falling

question 109

Multiple Choice

If aggregate output is falling,

• A)both b and e
• B)tax revenue increases
• C)automatic stabilizers will tend to increase the size of the deficit
• D)automatic stabilizers will tend to decrease the size of the deficit
• E)transfer payments decrease as fewer people become eligible for public assistance

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Definitions:

Correlates

Pertains to mutually related factors or variables that have a statistical relationship, indicating that when one changes, the other tends to change in a predictable manner.

Dominate

To exert control or influence over others, often establishing a position of superiority or authority.

Situational Nature

The aspect of behaviors or phenomena that is influenced by external environmental or contextual factors rather than by individual traits.

Political Change

Any significant alteration in the political landscape, institutions, or power dynamics of a society, often resulting from social movements, electoral outcomes, or policy reforms.