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:

Group Effort

The combined effort and collaboration of members working together towards a common goal within a group or team.

Managerial Task

Managerial task refers to the specific duties, responsibilities, and activities that managers are required to perform as part of the management process, including planning, organizing, leading, and controlling.

Contingency

A future event or circumstance that is possible but cannot be predicted with certainty.

Operative Goal

A specific, detailed target that an organization aims to achieve, often related to its day-to-day operations.