Automatic stabilizers stabilize the level of real GDP because: ...

[javeds]

Automatic stabilizers stabilize the level of real GDP because:
 a. Congress quickly changes spending and tax revenue.
  b. federal expenditures and tax revenues change as the level of real GDP changes.
  c. the spending and tax multiplier are constant.
  d. wages are controlled by the minimum wage law.

Question 2

The Monetarists advocate the monetary rule in order to stabilize the business cycle which states that the money supply should be increased by a constant rate year after year.
 a. True
  b. False
  Indicate whether the statement is true or false

[millet]

Answer to Question 1

b

Answer to Question 2

True