Automatic stabilizers are government programs that: a. ...

[moongchi]

Automatic stabilizers are government programs that:
 a. exaggerate the ups and downs in aggregate demand without legislative action.
  b. bring expenditures and revenues automatically into balance without legislative action.
  c. shift the budget toward a deficit when the economy slows but shift it toward a surplus during an expansion.
  d. increase tax collections automatically during a recession.

Question 2

Keynesian economists believe monetary policy is more effective than fiscal policy in stabilizing the business cycle.
 a. True
  b. False
  Indicate whether the statement is true or false

[krakiolit]

Answer to Question 1

c

Answer to Question 2

False

[moongchi]

YES! Correct, THANKS for helping me on my review

[Sarahjh]

Excellent