Question 1
An example of automatic stabilizers is
◦ government spending rising in a recession.
◦ taxes rising in a recession.
◦ taxes falling in an expansion.
◦ All of these
Question 2
An example of automatic stabilizers is
◦ government spending rising during an expansion.
◦ government spending falling during a recession.
◦ taxes rising in an expansion.
◦ deficit targeting.