The Existence of Automatic Stabilizers Will

question 115

Multiple Choice

The existence of automatic stabilizers will

• A) reduce the recognition lag of discretionary fiscal policy.
• B) eliminate recessions.
• C) reduce the size of recessionary and inflationary gaps.
• D) cause the effects of shocks to aggregate demand to have a larger effect on GDP.

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Definitions:

Change Strategy

A plan or approach designed to facilitate the transition from a current state to a desired future state, often involving steps to overcome barriers.

Negative Self-statements

Critical or pessimistic thoughts that an individual has about themselves, often a focus in cognitive-behavioral therapy to challenge and modify.

Coping Thoughts

Self-reassuring or motivating thoughts that people use to manage stress, overcome obstacles, or deal with challenging situations.

Self-defeating Thoughts

Negative thoughts about oneself that undermine one's confidence and can obstruct achieving goals.