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4. Using policy to stabilize the economyr The government has the ability to inuence the level of output in the short run using monetary and

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4. Using policy to stabilize the economyr The government has the ability to inuence the level of output in the short run using monetary and scal policy. There is some disagreement as to whether the government should attempt to stabilize the economy. which of the following are arguments in favour of active stabilization policy by the government? Check all that apply. [:1 Businesses make investment plans many months in advance. [:1 The current tax system acts as an automatic stabilizer. [:1 The central bank can effectively respond to excessive pessimism by expanding the money supply and lowering interest rates. C] Changes in government purchases and taxation must go through parliamentary committees in both the House of Commons and the Senate, and be passed by both legislative bodies. which of the following are examples of automatic stabilizers? Check all that apply. [:1 Corporate income taxes [:1 Personal income taxes [:1 Unemployment insurance benets

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