Automatic stabilizers are government programs that:
a. exaggerate the ups and downs in aggregate demand without legislative action.
b. bring expenditures and revenues automatically into balance without legislative action.
c. shift the budget toward a deficit when the economy slows but shift it toward a surplus during an expansion.
d. increase tax collections automatically during a recession.
c
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How are interest rates determined in the Keynesian model?
A. money supply, interest rates, government spending, supply, price and output B. money supply, interest rates, investment, demand, price and output C. money supply, savings, consumption, demand, price and output
When we say that an individual behaves according to "rational self-interest," we mean that this individual
A) is motivated by greed. B) will always buy the most fashionable items available. C) never considers the well being of any other individual. D) is making choices that he or she believes will leave him or her better off.