Automatic stabilizers
A) prolong the inside lag but reduce the outside lag
B) mitigate the multiplier effect of disturbances on aggregate demand
C) render any active fiscal policy unnecessary
D) work when there is a demand disturbance but not when there is a supply shock
E) automatically coordinate fiscal and monetary policy
Correct Answer:
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Q2: Economic forecasts tend to be
A)difficult to make
Q3: If it is unknown whether a disturbance
Q4: Even the most successful economic forecasters make
Q5: Automatic stabilizers reduce the size of economic
Q6: A big advantage of automatic stabilizers is
Q7: If a central bank believes that an
Q8: Economic disturbances are likely to be caused
Q9: Generally speaking, automatic fiscal stabilizers
A)raise the level
Q10: Stabilization policy is affected by inside lags,
Q11: Designing successful economic stabilization policy is difficult
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