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:

Self-serving Bias

A cognitive bias that involves perceiving oneself in an overly favorable manner or attributing success to internal factors and failures to external factors.

Cognitive Dissonance

A state of mental unease caused by possessing multiple conflicting beliefs, ideas, or values at the same time.

Dopamine-rich Circuits

Neural pathways in the brain that are densely populated with dopamine receptors, playing a key role in reward, pleasure, and addiction.

Passionate About

Having a strong feeling or enthusiasm for something or someone.