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Changes in Expenditures and Taxes That Occur Through Automatic Stabilizers

Question 30

Multiple Choice

Changes in expenditures and taxes that occur through automatic stabilizers


A) shift the aggregate demand curve to the right in the event of an economic expansion.
B) shift the aggregate demand curve to the left in the event of an economic contraction.
C) do not shift the aggregate demand curve.
D) cause a movement up along the aggregate demand curve the event of an economic expansion and a movement down along the aggregate demand curve the event of an economic contraction.

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