Forces within the economy that naturally tend to counteract recessions and inflation are known as
a. discretionary stabilizers.
b. automatic stabilizers.
c. demand-management policies.
d. fiscal dividends.
b. automatic stabilizers.
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What is required for a negative externality to occur?
A) The intention or plan to directly impose costs on others B) The full costs of an action aren't taken into account C) A total lack of concern for other people's welfare D) Greed
The situation in which buyers are able to affect the price of a good is referred to as ________ power
A) monopoly B) purchasing C) monopsony D) countervailing
Federal Deposit Insurance Corporation protection of deposits
a. increases the likelihood of bank runs b. increases bankers' incentives to be cautious with depositors' money c. reduces bankers' incentives to be cautious with depositors' money d. lessens the need for the Fed to regulate banking activity e. began in 1913 with the creation of the Fed
Economic contractions during the period from 1950 to 2007
A. were longer than prior contractions. B. were deeper (in terms of Real GDP) than prior contractions. C. produced larger increases in unemployment than did prior contractions. D. were less frequent than prior contractions.