Because of Automatic Stabilizers,_____

question 46

Multiple Choice

Because of automatic stabilizers,_____.

• A)fiscal policy focuses on maintaining an annually balanced budget
• B)planning discretionary fiscal measures to reduce economic fluctuations is easy
• C)government budget deficits are zero if averaged out over the entire business cycle
• D)policy makers should be concerned less with balancing the budget annually
• E)government budget deficits are smaller during expansions and larger during contractions

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Definitions:

Equilibrium Price

The price at which the quantity of goods supplied is equal to the quantity of goods demanded.

Quantity Supplied

The total amount of a good or service that producers are willing and able to sell at a given price within a specific time period.

Equilibrium Prices

The market price at which the quantity of goods supplied is equal to the quantity of goods demanded, leading to a stable market condition where there is no tendency for change.

Seating Capacity

The number of people who can be accommodated in a space, such as a vehicle, room, or venue, based on the available seats.