If the Economy Dips into a Recession

question 175

Multiple Choice

If the economy dips into a recession

• A)automatic stabilizers will cause tax receipts to fall and transfer payments to rise.
• B)automatic stabilizers will cause tax receipts to rise and transfer payments to fall.
• C)discretionary fiscal policy will generate increased transfer payments and lower tax receipts.
• D)discretionary fiscal policy will reduce government outlays and increase tax receipts.
• E)nothing will happen to the federal budget unless the President and Congress take specific corrective action.

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Definitions:

Skinner

B.F. Skinner was an American psychologist and behaviorist who developed the theory of operant conditioning, focusing on the consequences of behaviors.

Freud

Sigmund Freud, Austrian neurologist and founder of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Falsifiable

A characteristic of a statement, hypothesis, or theory that denotes it can be proven false by observation or experimentation.

Heuristic

A method or approach that enables a person to discover or learn something for themselves, often using experiences or observations rather than rigid rules.