Multiple Choice
Automatic stabilizers
A) increase the problems that lags cause in using fiscal policy as a stabilization tool.
B) are changes in taxes or government spending that increase aggregate demand without requiring policymakers to act when the economy goes into recession.
C) are changes in taxes or government spending that policymakers agree to when the economy goes into recession.
D) are part of discretionary fiscal policy.
Correct Answer:
Verified
Correct Answer:
Verified
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