During a Recession,the Budget Deficit Generally Increases Because Tax Revenues

question 3

Multiple Choice

During a recession,the budget deficit generally increases because tax revenues weaken while expenditures rise.This increase is known as the

• A) automatic stabilizer.
• B) net stimulus increase.
• C) automatic increase.
• D) fiscal stabilizer.

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Definitions:

Information Processing

The acquisition, recording, organization, retrieval, display, and dissemination of information.

Satisfice

Satisfice is a decision-making strategy that aims for a satisfactory or adequate result, rather than the optimal solution, particularly when faced with limited information or time.

Shareholders

Shareholders are individuals or entities that own shares in a company, thereby holding a portion of the ownership and potentially influencing company decisions.

Problems

Situations, questions, or conditions perceived as unsatisfactory, requiring solutions or answers.