Automatic Stabilizers

question 73

Multiple Choice

Automatic stabilizers

• A)increase the problems that lags cause in using fiscal policy as a stabilization tool.
• B)are changes in taxes or government spending that increase aggregate demand without requiring policy makers to act when the economy goes into recession.
• C)are changes in taxes or government spending that policy makers quickly agree to when the economy goes into recession.
• D)All of the above are correct.

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Definitions:

Cognitive Functioning

Refers to mental processes such as perception, memory, problem-solving, and decision-making that enable individuals to understand and interact with the world.

Hidden Agendas

Unstated personal or organizational motives driving behavior or decision-making, often conflicting with what is openly expressed.

Problem Exploration

The process of examining or investigating an issue in detail to understand its nature and implications.

Problematic Behaviors

Actions or patterns of behavior that are harmful or may negatively impact oneself or others.