Because of the Automatic Stabilisers, a Decline in the Level

question 55

Multiple Choice

Because of the automatic stabilisers, a decline in the level of economic activity will cause:

• A) an increase in tax revenues collected.
• B) a decrease in government expenditures.
• C) a smaller budget deficit.
• D) an increase in welfare payments.

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Definitions:

Larynx

The voice box located in the neck that contains the vocal cords; involved in breathing, producing sound, and protecting the trachea.

Epiglottis

A flap of cartilage located at the base of the tongue that prevents food and drink from entering the windpipe during swallowing.

Thyroid

The thyroid is a butterfly-shaped gland located in the neck, below the Adam's apple, producing hormones that regulate the body's metabolic rate, heart and digestive function, muscle control, brain development, and bone maintenance.

Cricoid

A ring-like cartilage located at the top of the trachea and below the thyroid cartilage, forming the back part of the larynx and providing attachment for muscles involved in opening and closing the airway.