Solved

Automatic Fiscal Stabilizers ________ the Impact of Demand or Supply

Question 89

Multiple Choice

Automatic fiscal stabilizers ________ the impact of demand or supply shocks on the economy since government's net tax revenues ________ during booms and ________ during recessions.


A) magnify; increase; decrease
B) magnify; decrease; increase
C) dampen; increase; decrease
D) dampen; decrease; increase
E) does not affect; are constant; are constant

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q18: If an economy is experiencing neither a

Q23: If the short-run macroeconomic equilibrium occurs with

Q84: The table below shows data for five

Q94: When an economy experiences sustained growth in

Q98: Consider the AD/AS model.Since output in the

Q110: Suppose the economy is in macroeconomic equilibrium

Q117: Automatic fiscal stabilizers are most helpful in<br>A)making

Q120: If the economy in the short run

Q131: In macroeconomic analysis,the assumption that potential output

Q135: Consider the basic AD/AS diagram.The vertical line