Automatic stabilizers combine changes in discretionary fiscal ...

[SGallaher96]

Automatic stabilizers combine changes in discretionary fiscal policy with changes in government spending and taxes influenced by the business cycle in order to stabilize the economy.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

Preannounced, stable policies to achieve a low and constant money supply growth and a balanced federal budget are therefore the best way to lower the inflation rate. This statement best illustrates the:
 a. Keynesian theory.
  b. rational expectations theory.
  c. incomes policy.
  d. supply-side theory.

[vboyd24]

Answer to Question 1

False

Answer to Question 2

b