During Recessions, How Do Automatic Stabilizers Change Government Deficit and Taxes

question 35

Multiple Choice

During recessions, how do automatic stabilizers change government deficit and taxes?

• A) Both deficit and taxes increase.
• B) Both deficit and taxes decrease.
• C) Deficit increases and taxes decrease.
• D) Deficit decreases and taxes increase.

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Definitions:

Population Mean

The average of a set of characteristics or numbers in the entire population.

Standard Error

A statistical measure that describes the accuracy with which a sample distribution represents a population using standard deviation.

Economics Class

A course of study that examines the production, distribution, and consumption of goods and services, focusing on economic theories and principles.

Interval Estimate

An estimate of a population parameter that specifies a range within which the parameter is expected to lie.