Multiple Choice
Because of automatic stabilizers, when GDP fluctuates the
A) government's deficit fluctuates directly with GDP so that it is larger when GDP increases.
B) government's deficit fluctuates inversely with GDP so that it is larger when GDP decreases.
C) the economy will automatically go to full employment.
D) government's budget remains in balance.
Correct Answer:

Verified
Correct Answer:
Verified
Q112: What is fiscal policy and what are
Q125: If employment exceeds full employment, what fiscal
Q132: Automatic stabilizers refer in part to<br>A) the
Q133: The Council of Economic Advisers have the
Q134: How has the federal government debt as
Q135: "Between 2002 and 2007, U.S. GDP increased,
Q136: By definition, a government budget deficit is
Q139: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5270/.jpg" alt=" -The figure above
Q140: "More than 9,000 laid- off Nevada workers
Q142: An increase in the government _ reduces