Automatic Stabilisers Tend to Stabilise the Level of Real GDP

question 51

Multiple Choice

Automatic stabilisers tend to stabilise the level of real GDP because:

• A)Parliament quickly changes spending and tax revenue.
• B)federal expenditures and tax revenues change as the level of real GDP changes.
• C)the spending and tax multiplier are constant.
• D)wages are controlled by the minimum wage law.

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