Because automatic stabilizers exist in the United States economy
A) during a recession,transfer payments automatically rise and tax revenue drops;during a period of economic recovery,transfer payments fall and tax revenue rises.
B) real wages automatically adjust to keep the labor force fully employed at all stages of the business cycle.
C) monetary policy is designed to automatically respond to changes in money demand.
D) during a recession,the government's budget deficit automatically becomes smaller.
E) All of the choices/statements are truE.
Correct Answer:
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