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The Effect of Automatic Stabilizers on the Business Cycle Is

Question 63

Multiple Choice

The effect of automatic stabilizers on the business cycle is to:


A) make upswings larger and downswings smaller.
B) make upswings smaller and downswings larger.
C) make both upswings and downswings smaller.
D) eliminate fiscal drag.
E) make both upswings and downswings larger.

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