1 05 points awarded Scored Unemployment compensation is Mutiple Choice an automatic stabilizer because ties as come incrises slowing an economic expansion an automatic stabilizor because falls as income decreases slowing in economic contaction an automatic sacturer because & fals as income increases, sowing an economic expansion not an automactabl 65/100 00 8 Submited If a government wants to pursue an expansionary fiscal policy, then a tax cut of a certain size will be more expansionary when the 0/5 points awarded Scored Multiple Choice economy's MPC is large economy's MPS is large economy's MPC is small unemployment rate is low 11 Use the graph to answer the following question 0/5 points awarded Scored Price Level AD, AD, AD AD AS 65/100 aw Real GDP Suppose the economy is in equilibrium at point B which is below the full-employment output of point D if the government implements fiscal policy targeted at moving real GDP back to point D, but crowding out significantly reduces the effectiveness of the fiscal policy, the equilibrium point will likely end up closer to point Multiple Choice B A 0.5 points awarded Scored point D. but crowding out significantly reduces the effectiveness of the fiscal policy, the equilibrium point wil key cod o certo punt Quilibriums at point B which is below the full employment output of port D. If the govemment implements fiscal policy targeted at moving GOP back Mutiple Choice