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:

T Account

A visual representation used in accounting to depict the debit and credit sides of an account for easier analysis.

Dividends

Disbursements issued by a company to its shareholders, usually originating from the company's earnings.

Account Group

A classification method used in accounting to organize financial statements, grouping similar accounts together for easier reporting and analysis.

Fees Earned

Revenue generated from services provided by a company or individual over a specific period.