Automatic Stabilizers Have the Effect of

question 181

Multiple Choice

Automatic stabilizers have the effect of

• A) increasing aggregate demand during a recessionary gap.
• B) increasing aggregate demand during an inflationary gap.
• C) increasing long-run aggregate supply during a recessionary gap.
• D) increasing long-run aggregate supply during an inflationary gap.

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Definitions:

Limbic System

A group of structures in the brain associated with emotions and feelings; involved with producing sexual arousal.

Vagus Nerve Network

A system of fibers belonging to the tenth cranial nerve that innervates the heart, lungs, and digestive tract, playing a key role in the autonomic nervous system.

Endocrine System

A network of glands in the body that produces hormones to regulate important bodily functions such as growth, metabolism, and reproduction.

Sex Flush

A reddening of the skin that can occur during sexual arousal or activity due to increased blood flow.