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Question 20 Identify the word, concept, or expression most closely related to the word, concept, or expression below: Economy's Self Adjustment a) Non-discretionary fiscal policy b) Automatic stabilizers c) Discretionary fiscal policy d) Progressive income tax system e) Changes in resource prices ) Stagflation Question 21 Identify the word, concept, or expression most closely related to the word, concept, or expression below: Negative Aggregate Supply Shock a) Automatic stabilizers b) Non-discretionary fiscal policy c) Inflationary gap d) Economic cost of a recession e) Stagflation f) Non-accelerating inflation rate of unemployment Question 22 The expenditures multiplier is larger when prices are flexible. a) True b) False Question 23 An increase in the general price level moves the economy along the Aggregate Demand Curve. a) Truc b) False Question 24 An increase in imports represents a negative Aggregate Demand shock. a) True ) False Question 25 Fiscal automatic stabilizers automatically move government budget towards a deficit during economic recessions, and towards a surplus during economic booms. a) True 0) False Question 26 In the immediate aftermath of a positive Aggregate Demand shock, both product prices and resource prices rise a) True b) False