Budget changes that occur automatically during expansions and recessions: A. make economic fluctuations more pronounced than...
| A. |
make economic
fluctuations more pronounced than they would otherwise be.
|
|
| B. |
have no effect on
economic fluctuations.
|
|
| C. |
make economic
fluctuations less pronounced than they would otherwise be.
|
|
| D. |
All of these
|
|
| E. |
None of these
|
Homework Answers
Solution: make economic fluctuations less pronounced than they would otherwise be
Explanation: Budget changes that arises automatically during expansions and recessions act to stabilize economic cycles and it automatically triggers without explicit action by government. They offset fluctuations in demand by increasing government spending and decreasing taxes during a recession, and they do the opposite during expansion. It decreases the amplitude of fluctuations in economy without regular and deliberate changes in economic policy
Add Answer to:
Budget changes that occur automatically during expansions and
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A.
make economic
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