Automatic Stabilisers Tend to Stabilise the Level of Real GDP

question 119

Multiple Choice

Automatic stabilisers tend to stabilise the level of real GDP because:

• A) parliament quickly changes spending and tax revenue.
• B) federal expenditures and tax revenues change as the level of real GDP changes.
• C) the spending and tax multiplier are constant.
• D) wages are controlled by the minimum wage law.

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Definitions:

Communications Subsystem

The component within an organization or system that is responsible for the exchange and processing of information.

Cultural Gatekeeper

An individual or institution that controls access to cultural products and influences the spread and popularity of cultural trends.

Cultural Selection

The process by which certain cultural practices, ideas, or innovations are adopted and perpetuated within a society, often leading to cultural evolution.

Cultural Gatekeepers

Individuals or institutions that control access to cultural information and materials, influencing what is considered acceptable or popular.