Which of the Following Is True of Automatic Stabilizers

question 1

Multiple Choice

Which of the following is true of automatic stabilizers?

• A)They require ongoing decisions about government purchases and taxation to promote full employment and price stability.
• B)They include the unemployment compensation program.
• C)They tend to stimulate aggregate demand when the economy is experiencing an expansionary gap.
• D)They include tax cuts passed by Congress to ease a current recession in an economy that has a proportional income tax.
• E)They include government purchases of goods and services requiring Congressional approval.

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Definitions:

Hypothalamus

A region of the brain below the thalamus, responsible for regulating various bodily functions including temperature, hunger, thirst, and emotional activity.

Hormone Imbalance

A condition in which there is a disruption in the normal balance of hormones in the body, potentially affecting bodily functions and well-being.

Allostasis

The process of achieving stability or homeostasis through physiological or behavioral change.

Adrenal Cortex

The outer layer of the adrenal glands that produces steroid hormones which regulate metabolism and immunity.