Based on this graph, the multiplier effect ______.

Scarcity impels an individual to make choices

a. True b. False Indicate whether the statement is true or false

Which of the following statements is not true with regard to automatic stabilizers? a. The most important automatic stabilizer is the tax system

b. They act as shock absorbers to the economy. c. They require legislative action. d. Automatic stabilizers like government transfer payments change as business cycles conditions change.