Because of automatic stabilizers, _____. a. fiscal policy ...

[erika]

Because of automatic stabilizers, _____.
 a. fiscal policy focuses on maintaining an annually balanced budget
 b. planning discretionary fiscal measures to reduce economic fluctuations is easy
 c. government budget deficits are zero if averaged out over the entire business cycle
 d. policy makers should be concerned less with balancing the budget annually
 e. government budget deficits are smaller during expansions and larger during contractions

Question 2

Which of the following statements is true of unemployment?
 a. Cyclical unemployment decreases during recessions and increases during expansions.
 b. Some unemployment exists even when the economy is healthy and growing.
 c. Unemployment and inflation are not related.
 d. People who are willing and able to work but have given up the search for a job are considered unemployed.
  e. Voluntary unemployment refers to a situation in which people who really do not want to work only pretend to look for jobs.

[SAUXC]

Answer to Question 1

e

Answer to Question 2

b