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:

Yes Votes

The count of affirmative responses or approvals in a voting scenario.

Significance Level

The probability of rejecting the null hypothesis when it is actually true, used as a threshold for determining the statistical significance of a test result.

Homeowners

Individuals who possess ownership rights over a dwelling or a property in which they live.

Beef Consumption

The quantity of beef eaten over a particular period of time by an individual or population.