During Recessions,automatic Stabilizers Tend to Make the Government's Budget

question 57

Multiple Choice

During recessions,automatic stabilizers tend to make the government's budget

• A)move toward deficit.
• B)move toward surplus.
• C)move toward balance.
• D)not necessarily move the budget in any particular direction.

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Definitions:

Base Year Cost

The initial cost of an asset or investment, used as a reference point to measure the cost growth or performance over time.

Price Index

A statistical measure that shows changes in the price level of a basket of consumer goods and services over time, used to gauge inflation or deflation.

Dollar-Value LIFO

An inventory valuation method that uses the last-in, first-out (LIFO) principle, but accounts for changes in inventory value due to inflation by measuring inventory in dollar amounts rather than units.

Year-End Price

The market price of a stock or any other security on the last trading day of the year.