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    Microeconomics Study Set 2
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    Exam 12: Fiscal Policy
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    The Automatic Budget Surpluses and Budget Deficits That Occur in the Federal
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The Automatic Budget Surpluses and Budget Deficits That Occur in the Federal

Question 11

Question 11

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.

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