To Reduce the Size of Economic Fluctuations, the Government Could

Multiple Choice

To reduce the size of economic fluctuations, the government could

A) make fewer permanent changes in government spending.
B) change government purchases often to encourage a shift of the aggregate demand curve.
C) increase spending during a recession and decrease spending during an expansion.
D) keep government spending fixed to avoid shifting the aggregate demand curve.
E) continually increase government spending to shift the aggregate demand curve to the right.