Changes in expenditures and taxes that occur through automatic stabilizers
A) shift the aggregate demand curve to the right in the event of an economic expansion.
B) shift the aggregate demand curve to the left in the event of an economic contraction.
C) do not shift the aggregate demand curve.
D) cause a movement up along the aggregate demand curve the event of an economic expansion
and a movement down along the aggregate demand curve the event of an economic contraction.
Ans: C) do not shift the aggregate demand curve.
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Minimum differentiation among the political parties suggests that
a) the platforms of the parties will tend to have few, if any, new ideas b) the parties will offer few ideas on minimizing the size and scope of government c) the platforms of the parties will tend to become similar as they try to appeal to a majority of voters d) the platforms of the parties will tend to become dissimilar as they try to appeal to a loyal majority of voters
In open market operations, when the Fed __________ securities, bank reserves __________
A) buys; contract B) buys; expand C) sells; expand D) None of the above.