Automatic Fiscal Stabilizers ________ the Impact of Demand or Supply

question 89

Multiple Choice

Automatic fiscal stabilizers ________ the impact of demand or supply shocks on the economy since government's net tax revenues ________ during booms and ________ during recessions.

• A)magnify; increase; decrease
• B)magnify; decrease; increase
• C)dampen; increase; decrease
• D)dampen; decrease; increase
• E)does not affect; are constant; are constant

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