Multiple Choice
Automatic stabilizers reduce the size of economic fluctuations since they
A) affect aggregate demand and aggregate supply at the same time
B) reduce the outside lag to practically zero
C) reduce the recognition lag to practically zero
D) reduce the fiscal policy multiplier to 1
E) ensure that disposable income falls by less than income after a disturbance
Correct Answer:
Verified
Correct Answer:
Verified
Q33: Active stabilization policy may actually destabilize the
Q34: Policies designed to stabilize economic activity are
Q35: Automatic stabilizers<br>A)prolong the inside lag but reduce
Q36: If we have more information about the
Q37: Nominal GDP targeting implies that<br>A)there is an
Q39: When trying to stabilize the economy, it
Q40: If it is clear that a disturbance
Q41: If we have a loss function that
Q42: During the recession of 2007-09, the U.S.Fed<br>A)carefully
Q43: With nominal GDP targeting, the central bank<br>A)always