As a result of the existence of automatic stabilizers
A. the government budget deficit will always increase during a period of economic recession.
B. the economy will always tend to move toward a full-employment equilibrium.
C. the government budget deficit will always increase during a period of economic expansion.
D. the business cycle will no longer exist.
E. None of the choices are correct.
A. the government budget deficit will always increase during a period of economic recession.
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Entry of new firms into a perfectly competitive market raises the product's price
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Of the following, which is not an economic rationale for public utility regulation?
a. production process exhibiting increasing returns to scale b. constant cost industry c. avoidance of duplication of facilities d. protection of consumers from price discrimination e. none of the above