Deficit Targeting Acts as ________ Because It Requires Taxes to Be

question 64

Multiple Choice

Deficit targeting acts as ________ because it requires taxes to be raised and government spending to be cut during ________.

• A) an automatic stabilizer; an expansion
• B) an automatic destabilizer; an expansion
• C) an automatic stabilizer; a contraction
• D) an automatic destabilizer; a contraction

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Definitions:

Social Contract

A theory in political philosophy suggesting that people live together in society in accordance with an agreement that establishes moral and political rules of behavior.

Classical Theorist

refers to scholars from earlier periods whose works form the foundations of a discipline, such as Socrates in philosophy or Adam Smith in economics.

Hobbes

Refers to Thomas Hobbes, a 17th-century philosopher known for his social contract theory, which posits that people agree to surrender some freedoms to a ruler or government in exchange for security and social order.

Enlightenment Thinking

A philosophical movement of the 17th and 18th centuries emphasizing reason, individualism, and skepticism of traditional doctrines, leading to advances in science, politics, and human rights.