The Presence of Automatic Stabilizers in an Economy Suggest That

question 63

Multiple Choice

The presence of automatic stabilizers in an economy suggest that _____.

• A) the time lags in implementing fiscal policy are likely to be long
• B) in a recession, tax receipts will increase
• C) the government need not use fiscal policy to monitor economic activity
• D) structural deficits in an economy are likely to be very high

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