A Major Advantage of Automatic Stabilizers Is That They

question 19

Multiple Choice

A major advantage of automatic stabilizers is that they:

• A)simultaneously stabilize the economy and tend to reduce the absolute size of the public debt
• B)automatically produce surpluses during recessions and deficits during inflation
• C)require no legislative action by Parliament to be made effective
• D)guarantee that the federal budget will be balanced over the course of the business cycle
• E)guarantee that the federal budget will be balanced each year

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Definitions:

Cognitive Development

The method individuals use to comprehend, process, and acquire knowledge about their environment through the combined effects of inherited traits and acquired experiences.

Neural Activation

The process by which neurons in the brain are stimulated to communicate via electrical and chemical signals.

Memory Consolidation

The process by which short-term memories are stabilized and stored as long-term memories.

REM Sleep

A stage of sleep characterized by rapid eye movement, during which dreaming often occurs.