The effect of automatic stabilizers on the business cycle is to:
a. make upswings larger and downswings smaller.
b. make upswings smaller and downswings larger.
c. make both upswings and downswings smaller.
d. eliminate fiscal drag

The minimum increase in government spending necessary to reach full employment is

A) $2,000 B) $1,000 C) $500 D) $200 E) $100

Stagflation is the combination of

A) inflation and increasing real GDP. B) deflation and recession. C) inflation and recession. D) deflation with increasing real GDP.