Multiple Choice
Automatic stabilizers
A) prolong the inside lag but reduce the outside lag
B) mitigate the multiplier effect of disturbances on aggregate demand
C) render any active fiscal policy unnecessary
D) work when there is a demand disturbance but not when there is a supply shock
E) automatically coordinate fiscal and monetary policy
Correct Answer:

Verified
Correct Answer:
Verified
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Q32: Fiscal policy can be an inappropriate macroeconomic
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Q36: If we have more information about the
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Q40: If it is clear that a disturbance