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During recessions, automatic stabilizers work to reduce government expenditures and increase ...

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During recessions, automatic stabilizers work to reduce government expenditures and increase ...

Question 1.

Assume that in Agraria the actual deficit is $625 billion. If Agraria was at full employment, the deficit would be $325 billion. The structural deficit in Agraria is

▸ $300 billion.

▸ $325 billion.

▸ $625 billion.

▸ $950 billion.

Question 2.

During recessions, automatic stabilizers work to reduce government expenditures and increase government revenues.

▸ true

▸ false

Textbook

Principles of Economics

Edition: 12^th

Authors: Case, Fair, Oster

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