A Car Dealership Created a Scatterplot Showing the Manufacturer's Retail

question 67

Multiple Choice

A car dealership created a scatterplot showing the manufacturer's retail price and profit margin for the cars they have on their lot. As the manufacturer's suggested retail price increases,the profit margin tends to…

• A)Increase
• B)Decrease
• C)Stay the same
• D)None of the above

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Definitions:

Automatic Stabilizer

A government policy or program designed to counteract fluctuations in the nation's economic activity without intervention by policymakers, thereby stabilizing the economy over the business cycle.

Unemployment Insurance

A government program that provides financial assistance to unemployed workers who have lost their jobs through no fault of their own.

Automatic Stabilizers

Economic policies and programs that automatically adjust to counteract economic fluctuations without the need for government intervention.

Business Cycle

The fluctuations in economic activity that an economy experiences over a period of time, marked by periods of expansion and contraction in GDP.