Automatic Stabilizers Act Like

question 320

Multiple Choice

Automatic stabilizers act like:

• A)automatic expansionary fiscal policy when the economy is in inflation.
• B)automatic expansionary fiscal policy when the economy is in a recession.
• C)an additional multiplier effect.
• D)automatic contractionary policy when the economy is in a recession.

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Definitions:

Tax Imposed

Refers to charges or levies placed by a government on individuals or entities, influencing economic behavior, revenue collection, and market operations.

Grapefruit

A citrus fruit known for its slightly bitter taste and numerous health benefits, often used in diets and cooking.

Equilibrium

A state in a market where supply equals demand, conditions are stable, and there is no incentive for prices to change, leading to a balance between competing forces.

Equilibrium Price

The market price at which the quantity of goods supplied is equal to the quantity of goods demanded.