If Aggregate Output Is Falling

question 109

Multiple Choice

If aggregate output is falling,

• A)both b and e
• B)tax revenue increases
• C)automatic stabilizers will tend to increase the size of the deficit
• D)automatic stabilizers will tend to decrease the size of the deficit
• E)transfer payments decrease as fewer people become eligible for public assistance

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Definitions:

Century

A period of one hundred years, often used to denote significant historical periods or group years into manageable segments for analysis.

Productivity

Productivity measures the efficiency of production in terms of the amount of output produced per unit of input used.

Economy's Productivity

A measure of how efficiently goods and services are produced within an economy, typically quantified as output per unit of labor input.

Determinants

Factors or variables that cause changes in an economic model's behavior or outcomes.