Which of the following is an example of an automatic stabilizer? When the economy goes into a recession. a. more people become eligible for unemployment insurance benefits. b. stock prices decline, particularly for firms in cyclical industries. c. Congress begins hearings about a possible stimulus package. d. the Federal Reserve changes its target for the federal funds rate.

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Principles of Macroeconomics (Mind...

8th Edition
N. Gregory Mankiw
Publisher: Cengage Learning
ISBN: 9781305971509
BuyFind

Principles of Macroeconomics (Mind...

8th Edition
N. Gregory Mankiw
Publisher: Cengage Learning
ISBN: 9781305971509

Solutions

Chapter 21, Problem 6CQQ
Textbook Problem

Which of the following is an example of an automatic stabilizer? When the economy goes into a recession.

a. more people become eligible for unemployment insurance benefits.

b. stock prices decline, particularly for firms in cyclical industries.

c. Congress begins hearings about a possible stimulus package.

d. the Federal Reserve changes its target for the federal funds rate.

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Chapter 21 Solutions

Principles of Macroeconomics (MindTap Course List)

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