Because of Automatic Stabilizers, When Real GDP Increases

question 119

Multiple Choice

Because of automatic stabilizers, when real GDP increases

• A) government expenditures equal tax revenues.
• B) government expenditures decrease and tax revenues increase.
• C) government expenditures increase and tax revenues decrease.
• D) the economy will automatically go to full employment.

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Definitions:

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The reason or reasons someone has for acting or behaving in a particular way.

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