Automatic Stabilizers Are

question 90

Multiple Choice

Automatic stabilizers are

• A)provisions that cause changes in government spending and taxes that do not take the action of Parliament.
• B)the policies set by certain committees in Parliament.
• C)the tools used by the Prime Minister's Council of Economic Advisers.
• D)provisions that cause the aggregate supply curve to be upward sloping.

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Definitions:

Default Rate

A measure reflecting the percentage of borrowers who fail to make payments on their debts as scheduled.

Bad Debt Accruals

Bad debt accruals are amounts set aside by a company to cover accounts receivable that are not expected to be collected because customers are unable to pay.

Ages Receivables

A method of categorizing accounts receivable according to the length of time an invoice has been outstanding.

Gross Accounts Receivable Approach

A method to estimate the total amount of receivables, including both collected and still outstanding payments.