An Advantage of Automatic Stabilizers Is That

question 11

Multiple Choice

An advantage of automatic stabilizers is that

• A)they are built into the economy by legislation and therefore are already in place when economic conditions change.
• B)they give the government an opportunity to spend extra tax money collected.
• C)they intensify changes in the business cycle.
• D)they produce balanced budgets.
• E)government transfer payments automatically decline during recessions.

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Definitions:

Accommodating

Adapting one's actions or decisions to consider the needs or wishes of others, often at the expense of one's own preferences.

Lose/Lose Conflict Management

A conflict resolution approach where all parties involved suffer losses or no one achieves their objectives.

Appropriate Arbitration

A fair and neutral method for resolving disputes through an independent third party, often employed when both sides agree to abide by the decision made.

Win/Win Strategy

A cooperative negotiation or conflict resolution approach where all parties seek solutions that address the interests of everyone involved, aiming for mutual benefit.