Author Question: Automatic stabilizers are government programs that: a. exaggerate the ups and downs in aggregate ... (Read 133 times)

moongchi · **on:** Jun 30, 2018

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