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    Macroeconomics Study Set 27
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    Exam 13: Fiscal Policy Appendix Taxes and the Multiplier
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    Automatic Stabilizers Are Government Spending and Taxation Rules That Cause
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Automatic Stabilizers Are Government Spending and Taxation Rules That Cause

Question 256

Question 256

True/False

Automatic stabilizers are government spending and taxation rules that cause fiscal policy to be automatically expansionary when the economy contracts and automatically contractionary when the economy expands.

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