If There Are Automatic Stabilizers but No Deliberate Action by Policymakers

question 159

Multiple Choice

If there are automatic stabilizers but no deliberate action by policymakers, how would government expenditures change as output changes?

• A)They would rise as output rises.
• B)They would remain unchanged as output rises.
• C)They would rise as output falls.
• D)They would fall as output falls.

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