If There Are Automatic Stabilizers but No Deliberate Action by Policymakers

question 18

Multiple Choice

If there are automatic stabilizers but no deliberate action by policymakers, how would government expenditures and taxes change as output falls?

• A) Both government expenditures and taxes fall.
• B) Both government expenditures and taxes rise.
• C) Government expenditures rise and taxes fall.
• D) Government expenditures fall and taxes rise.

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Definitions:

Expressed Support

Vocal or demonstrated actions and reassurances provided to someone to demonstrate care, understanding, or solidarity.

Diversity

The inclusion of individuals representing more than one national origin, color, religion, socioeconomic stratum, sexual orientation, etc., in a group or organization.

Ethnic Groups

People who identify with each other based on shared cultural, linguistic, or ancestral characteristics.

Cardiopulmonary Disease

A broad category of diseases affecting the heart and lungs, impacting the efficiency of the cardiovascular and respiratory systems.