Multiple Choice
Which of the following statements is correct?
A) Built-in stability only partially offsets fluctuations in economic activity.
B) Built-in stability works in halting inflation, but it cannot alleviate unemployment.
C) Built-in stability can be relied on to eliminate completely any fluctuation in economic activity.
D) Built-in stability overcorrects for fluctuations in economic activity; for example, it may change a small expansion into a recession.
Correct Answer:

Verified
Correct Answer:
Verified
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