Conducting Fiscal Policy So That G = T + β

question 2

Multiple Choice

Conducting fiscal policy so that G = T + β (u - u ) , where G is government expenditures, T is n
Tax revenue, u is the unemployment rate, u
N
Is the natural rate of unemployment, and β is a
Positive number, is an example of a(n) :

• A)active rule. passive
• B)rule. discretionary
• C)policy. automatic
• D)stabilizer.

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