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As a Result of the Existence of Automatic Stabilizers

Question 78

Multiple Choice

As a result of the existence of automatic stabilizers


A) the government budget deficit will always increase during a period of economic recession.
B) the economy will always tend to move toward a full-employment equilibrium.
C) the government budget deficit will always increase during a period of economic expansion.
D) the business cycle will no longer exist.
E) None of the choices are correct.

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