Automatic Stabilizers Lead To

question 92

Multiple Choice

Automatic stabilizers lead to:

• A)a decrease in the taxes collected by the government during an economic expansion.
• B)a decrease in unemployment compensation during a recession.
• C)Congressional action on changing the tax rates
• D)an increase in transfer payments during a recession in an economy.
• E)an increase in the price level during a recession in an economy

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Definitions:

Other Comprehensive Income

Elements of income that are not included in net income, including items like foreign currency translation adjustments and unrealized gains or losses on securities.

Retained Earnings

The portion of net income left over for the business after it has paid out dividends to its shareholders, often reinvested into the business.

Comprehensive Loss

Reflects the total net expenses, including all losses and expenses, surpassing the total revenues and gains over a period, thereby showcasing a negative net income on the financial statements.

Other Comprehensive Income

Earnings that are not included in net income on the income statement and relate to gains and losses that have not yet been realized.