Do automatic fiscal stabilizers eliminate business cycles?

A) Yes
B) No, because they have no effect if the business cycle is the result of some unanticipated change
C) No, but they do moderate business cycles
D) No, they increase the likelihood that a business cycle occurs
E) No, they make business cycle fluctuations more severe

C

Economics

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The construct used to demonstrate efficient use of society's resources is the

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Which government policy raises the interest rate and raises investment spending?

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