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To Counteract the Effect of Automatic Stabilisers During a Recession

question 130

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To counteract the effect of automatic stabilisers during a recession and keep the budget balanced, the federal government would need to ________ government spending, or ________ taxes, which would ________ aggregate demand.


Definitions:

Cognitive Theorists

Psychologists who focus on how our mental processes like thinking, perception, and problem-solving influence our behavior.

Incentives for Future Behavior

Rewards or punishments that influence an individual's likelihood of repeating specific behaviors.

Daily Impinging Information

The continuous flow of data and stimuli from the external environment that individuals encounter in their everyday lives.

Rational Emotive Behavior Therapy

is a form of cognitive-behavioral therapy that focuses on altering negative thought patterns to combat emotional distress.

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