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Author Question: The presence of the automatic stabilizers means an increase in the budget deficit will be ... (Read 54 times)

imanialler

  • Hero Member
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  • Posts: 539
on: Jun 30, 2018
The presence of the automatic stabilizers means an increase in the budget deficit will be automatically experienced during a recession whereas a budget surplus will be automatically experienced during an economic expansion.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

According to rational expectations theory, what information do businesses and workers use when they form their expectations regarding inflation?
 a. Recent events and data.
  b. Keynesian and monetarist models.
  c. Forecasts by public-and private-sector economists.
  d. All the relevant information that is available.


Tabitha_2016

  • Sr. Member
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Reply #1 on: Jun 30, 2018
Answer to Question 1

True

Answer to Question 2

d


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