On a Graph Showing the Influence of Automatic Stabilizers on the Economy

question 22

Multiple Choice

On a graph showing the influence of automatic stabilizers on the economy, government expenditures on transfer payments and real GDP have a(n) :

• A) direct relationship as shown by an upward-sloping line.
• B) direct relationship as shown by a downward-sloping line.
• C) inverse relationship as shown by an upward-sloping line.
• D) inverse relationship as shown by a downward-sloping line.

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Definitions:

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