Multiple Choice
The automatic budget surpluses and budget deficits that occur in the federal budget over the business cycle
A) destabilize the economy.
B) stabilize the economy.
C) decrease potential GDP.
D) increase potential GDP.
E) destabilize the debt to GDP ratio.
Correct Answer:

Verified
Correct Answer:
Verified
Q2: In a closed economy with fixed or
Q6: Figure 12.7 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB3061/.jpg" alt="Figure 12.7
Q7: The increase in government spending on Employment
Q9: From an initial long-run equilibrium, if aggregate
Q10: Figure 12.6 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB3061/.jpg" alt="Figure 12.6
Q12: Tax cuts on business income increase aggregate
Q13: A recession tends to cause the federal
Q14: Figure 12.4 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB3061/.jpg" alt="Figure 12.4
Q15: Which of the following would be classified
Q39: The government purchases multiplier will be larger