Do Automatic Fiscal Stabilisers Eliminate Business Cycles

question 65

Multiple Choice

Do automatic fiscal stabilisers eliminate business cycles?

• A) Yes
• B) No, they make business cycle fluctuations more severe.
• C) No, because they have no effect if the business cycle is the result of some unanticipated change.
• D) No, they increase the likelihood that a business cycle occurs.
• E) No, but they do moderate business cycles.

---

Definitions:

Competition Act

Legislation designed to promote or maintain market competition by regulating anti-competitive conduct among companies.

District Court

A type of court existing in various jurisdictions, typically with general jurisdiction over civil and criminal cases in a specific geographic area.

Province

A territorial division within a country, often with its own local government.

Competition Act

Legislation aimed at promoting healthy competition and preventing monopolies, anti-competitive practices within an economy.