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Automatic fiscal policy occurs a.because government expenditures on goods and services fluctuate with real GDP. b.because tax revenues and transfer payments fluctuate with real GDP.

Automatic fiscal policy occurs

a.because government expenditures on goods and services fluctuate with real GDP.

b.because tax revenues and transfer payments fluctuate with real GDP.

c.because monetary policy is effective.

d.when the Parliament makes changes to transfer payment programmes.

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