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Conducting Fiscal Policy So That G = T β\beta (U - Un), Where G Is Government Expenditures, T Is

Question 55

Multiple Choice

Conducting fiscal policy so that G = T + β\beta (u - un) , where G is government expenditures, T is tax revenue, u is the unemployment rate, un is the natural rate of unemployment, and β\beta is a positive number, is an example of a(n) :


A) active rule.
B) passive rule.
C) discretionary policy.
D) automatic stabilizer.

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