The Effectiveness of the Built-In or Automatic Stabilizers Is Limited

question 2

Multiple Choice

The effectiveness of the built-in or automatic stabilizers is limited because:

• A)the stabilizers produce budget surpluses during recessions.
• B)transfer payments and subsidies increase during inflation and decrease during recessions.
• C)the offset which the stabilizers provide to a change in private spending is less than the change in private spending.
• D)the stabilizers raise the general price level regardless of the phase of the business cycle.

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Definitions:

Real Estate

Property consisting of land and the buildings on it, along with its natural resources, such as crops, minerals, or water; immovable property of this nature.

Apartments

Residential units in a building or complex, typically owned or rented as homes.

Database

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A printed publication consisting of folded unstapled sheets and containing news, articles, advertisements, and other information.