As a Result of the Existence of Automatic Stabilizers

question 279

Multiple Choice

As a result of the existence of automatic stabilizers

• A)the government budget deficit will always increase during a period of economic recession.
• B)the economy will always tend to move toward a full-employment equilibrium.
• C)the government budget deficit will always increase during a period of economic expansion.
• D)the business cycle will no longer exist.
• E)None of the choices are correct.

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Definitions:

Medicaid

A government healthcare program in the United States that provides health coverage to eligible low-income adults, children, pregnant women, elderly adults, and people with disabilities.

Arithmetic Mean

The sum of a collection of numbers divided by the count of numbers in the collection, often used as a measure of central tendency.

Investment

Allocation of resources, usually financial, in assets or projects expected to yield returns over time.

Chebysheff's Theorem

A statistical rule stating that for any dataset, regardless of distribution, a certain proportion of values will fall within a specified number of standard deviations from the mean.