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Because of Automatic Stabilizers, Government Budget Deficits Are

Question 78

Multiple Choice

Because of automatic stabilizers, government budget deficits are


A) positive during both expansions and contractions.
B) negative during both expansions and contractions.
C) zero if averaged out over the entire business cycle.
D) larger during expansions and smaller during contractions.
E) smaller during expansions and larger during contractions.

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