Automatic Stabilizers

question 42

Multiple Choice

Automatic stabilizers

• A)increase the magnitude of the government expenditure multiplier.
• B)decrease the magnitude of the government expenditure multiplier.
• C)have no effect on the magnitude of the government expenditure multiplier.
• D)reduce the government expenditure multiplier to zero.
• E)increase the magnitude of the tax multiplier.

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Definitions:

Bouquets

Arrangements of flowers, often decorative and used as gifts or for special occasions.

Florist

A professional or business that specializes in the arrangement and sale of flowers and floral displays.

Production Function

A mathematical relation between quantities of input and output in production, specifying the maximum output achievable from different combinations of input.

Total-Cost Curve

A graphical depiction showing the total cost of producing different levels of output, illustrating the relationship between production volume and total costs.