Which of the Following Is True of Automatic Stabilizers

question 1

Multiple Choice

Which of the following is true of automatic stabilizers?

• A)They require ongoing decisions about government purchases and taxation to promote full employment and price stability.
• B)They include the unemployment compensation program.
• C)They tend to stimulate aggregate demand when the economy is experiencing an expansionary gap.
• D)They include tax cuts passed by Congress to ease a current recession in an economy that has a proportional income tax.
• E)They include government purchases of goods and services requiring Congressional approval.

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Definitions:

Non-participative Management

A management style where decision-making is centralized with little to no input from subordinate employees, limiting their participation in organizational processes.

Performance Rewards

A system or mechanism designed to provide compensation, recognition, or benefits to employees based on their job performance.

Fixed Costs

Expenses that do not change in proportion to the level of goods or services produced by a business.

Attitude Measurement

is the process of using various techniques and tools to evaluate and quantify individuals' attitudes towards objects, people, or ideas.