Question 1
The economic impact of automatic stabilizers during inflationary periods is to
◦ accelerate inflationary pressures.
◦ increase exports.
◦ have no impact on inflation.
◦ moderate inflationary pressures.
Question 2
The economic impact of ________ during recessionary periods is to decrease taxes.
◦ negative demand shocks
◦ automatic stabilizers
◦ recognition lags
◦ increasing the reserve rate