The Effect of Automatic Stabilizers on the Business Cycle Is

question 136

Multiple Choice

The effect of automatic stabilizers on the business cycle is to:

• A)make upswings larger and downswings smaller.
• B)make upswings smaller and downswings larger.
• C)make both upswings and downswings smaller.
• D)eliminate fiscal drag.
• E)make both upswings and downswings larger.

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Definitions:

Goodwill

An intangible asset that represents the excess value of a company over its net asset value, often arising from factors such as reputation, brand, or customer loyalty.

Intangible Assets

Assets that do not have physical substance but are identifiable non-monetary assets without physical substance, used in the production or supply of goods or services, for rental to others, or for administrative purposes.

Identifiability

The capability to recognize, define, or distinguish assets and liabilities within a transaction or set of financial data.

AASB 138

A guideline issued by the Australian Accounting Standards Board that mandates how entities should account for and report on intangible assets.