APFIVE Multiplier Effect and Automatic Stabilizers
Which of the following similarities exists between the multiplier effect and automatic stabilizers in their impact on economic fluctuations?
A
Both mechanisms require explicit legislative changes to be activated in response to economic shifts.
B
Both are designed to reduce the long-run impact of fiscal policy on sustained economic growth.
C
Both mechanisms rely solely on changes in government spending and ignore private sector behavior.
D
Both mechanisms amplify initial changes in spending through subsequent rounds, thereby stabilizing the economy over time.
Question Leaderboard
| Rank | |||||
|---|---|---|---|---|---|
| #1 | jcbaird17 | 1 | 1 | 0m 20s | 80 |
| #2 | nisrinazahirasadida | 1 | 1 | 0m 32s | 68 |
| #3 | omar.hossam2612 | 1 | 1 | 0m 35s | 65 |
Items per page:
10
1 – 3 of 3