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

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6. Which of the following is an example of an automatic stabilizer?

a. When the economy goes into a recession, more people become eligible for employment insurance benefits.

b. When the economy goes into a recession, stock prices decline, particularly for firms in cyclical industries.

c. When the economy goes into a recession, Parliament begins hearings about a possible stimulus package.

d. When the economy goes into a recession, the Bank of Canada changes its target for the overnight rate.

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Principles Of Macroeconomics

ISBN: 9780176591977

7th Canadian Edition

Authors: N. Mankiw, Ronald Kneebone, Kenneth McKenzie

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