The recessions associated with the business cycle come at regular intervals

Suppose that the price of doughnuts decreases. Given that doughnut holes are a by-product of producing doughnuts, one would expect:

A. the supply of doughnuts to increase. B. the supply of doughnut holes to increase. C. the supply of doughnut holes to decrease. D. the supply of doughnuts to decrease.

Deficit targeting acts as ________ because it requires taxes to be raised and government spending to be cut during ________.

A. an automatic stabilizer; an expansion B. an automatic stabilizer; a contraction C. an automatic destabilizer; an expansion D. an automatic destabilizer; a contraction