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Which of the Following Best Describes What Is Meant by Automatic

Question 138

Multiple Choice

Which of the following best describes what is meant by automatic stabilization policies?


A) Policies that automatically help boost the economy when heading into an economic upturn
B) Policies that require the direct action of the movement of the economy
C) Policies that tend to dampen increases in aggregate demand during expansion and stimulate aggregate demand during recession without the requirement of political voting
D) Any policy that acts on fiscal matters to improve economic performance

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