functions as an automatic fiscal stabilizer because it increases when the economy is in a recession and decreases when the economy is in a recovery or boom. O Real GDP O Nominal GDP O Unemployment insurance O Inflation
functions as an automatic fiscal stabilizer because it increases when the economy is in a recession and decreases when the economy is in a recovery or boom. O Real GDP O Nominal GDP O Unemployment insurance O Inflation
Chapter11: Fiscal Policy
Section: Chapter Questions
Problem 2.9P
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![Question 4
functions as an automatic fiscal stabilizer because it increases when the
economy is in a recession and decreases when the economy is in a recovery or boom.
O Real GDP
Nominal GDP
O Unemployment insurance
O Inflation](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb9eb75a3-ee8f-4e14-ad8d-9f0143eecd73%2F40dae2a2-2dd1-49bf-8e92-0db127988b87%2Flbvmap6_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Question 4
functions as an automatic fiscal stabilizer because it increases when the
economy is in a recession and decreases when the economy is in a recovery or boom.
O Real GDP
Nominal GDP
O Unemployment insurance
O Inflation
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