All of the Following Are an Example of an Automatic

question 114

Multiple Choice

All of the following are an example of an automatic stabilizer except for:

• A) A decrease in income tax revenue during a recession.
• B) An increase in unemployment benefits during a recession.
• C) An increase in interest rates during a period of inflation.
• D) A decrease in government welfare spending during an economic expansion.

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Definitions:

Context Effects

The influence of environmental factors on one's perception, cognition, or behavior.

Perceptual Set

A readiness to perceive a stimulus in a particular way, influenced by expectations, emotions, and cultural background.

Infectious Disease

Diseases caused by pathogenic microorganisms, such as bacteria, viruses, parasites, or fungi; these diseases can be spread, directly or indirectly, from one person to another.

Aches And Pains

General and nonspecific discomforts or soreness often associated with overexertion, stress, or minor health issues.