A major advantage of automatic stabilizers is that they:
a. guarantee that the federal budget will be balanced over the course of the business cycle.
b. require no legislative action by Congress to take effect.
c. simultaneously stabilize the economy and reduce the size of the public debt.
d. automatically produce surpluses during recessions and deficits during economic booms.
Question 2
Which of the following is assumed to be constant in the quantity theory of money?
a. The money supply
b. Real GDP
c. The price level
d. The velocity of money
e. Nominal GDP
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