An Automatic Stabilizer _____

question 66

Multiple Choice

An automatic stabilizer _____

• A) increases inflationary pressure during expansions.
• B) increases the drop in disposable income during recessions and increases the jump in disposable income during expansions.
• C) reduces the drop in disposable income during recessions and reduces the jump in disposable income during expansions.
• D) increases tax revenue relative to government spending throughout the business cycle.
• E) decreases tax revenue relative to government spending throughout the business cycle.

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