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Do Automatic Fiscal Stabilizers Eliminate Business Cycles

Question 45

Multiple Choice

Do automatic fiscal stabilizers eliminate business cycles?


A) Yes
B) No,because they have no effect if the business cycle is the result of some unanticipated change
C) No,but they do moderate business cycles
D) No,they increase the likelihood that a business cycle occurs
E) No,they make business cycle fluctuations more severe

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