In a Recession, Automatic Stabilizers Decrease Taxes and Increase Transfer

question 95

True/False

In a recession, automatic stabilizers decrease taxes and increase transfer payments.

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Definitions:

Frequency Judgment

The process of estimating the rate at which an event occurs or the likelihood of its occurrence.

Availability

The extent to which a resource or service can be used or obtained.

Representativeness Heuristic

A cognitive shortcut used in decision making and judgments, where the likelihood of an object or event is assessed based on how closely it matches the typical case or stereotype.

Preexisting Beliefs

Ideas or convictions that an individual holds before being exposed to new information or experiences.