An Example of "Automatic Stabilizers" Is a Rise in ________

question 36

Multiple Choice

An example of "automatic stabilizers" is a rise in ________ causing the budget deficit to ________.

• A)real GDP,fall
• B)real GDP,rise
• C)government expenditures,fall
• D)government expenditures,rise
• E)the average tax rate,fall

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Definitions:

Cost Of Goods Sold

The total cost involved in manufacturing or acquiring the products that a company has sold during a specific period.

Investment

Allocation of resources, such as capital or time, in anticipation of generating income or profit in the future.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the asset's consumption, wear, and tear.

Straight-Line Method

A method of calculating depreciation or amortization by spreading the cost of an asset evenly across its useful life.