Because Automatic Stabilizers Exist in the United States Economy

question 287

Multiple Choice

Because automatic stabilizers exist in the United States economy

• A)during a recession,transfer payments automatically rise and tax revenue drops;during a period of economic recovery,transfer payments fall and tax revenue rises.
• B)real wages automatically adjust to keep the labor force fully employed at all stages of the business cycle.
• C)monetary policy is designed to automatically respond to changes in money demand.
• D)during a recession,the government's budget deficit automatically becomes smaller.
• E)All of the choices/statements are true.

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Definitions:

Bottling Department

A specific section within a manufacturing process focused on the filling of containers with liquids for distribution and sale.

Work in Process

Inventory that includes all partially completed goods that are still in the process of production.

Equivalent Unit

A measurement used in process costing that quantifies the amount of materials or labor required to produce a single unit of output in mixed or partial stages of completion.

Materials Cost

Materials cost refers to the total expense of raw materials and components used in the manufacturing process of goods.