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D Question 22 1 pts Automatic stabilizers tend to increase GDP when it is falling and reduce GDP when it is rising. O True OFals D Question 23 1 pts Expansionary fiscal policy might consist of a decrease in government purchases O True O Fals D Question 24 1 pts A contractionary fiscal policy might involve an increase in taxes, True Fals D Question 25 1 pts A reduction in government purchases would have the effect of reducing real GDP and the price level True False D Question 26 1 pts The impact lag results partly from the nature of bureaucracy True False DI Question 27 1 pts Supply-side economics stresses the use of fiscal policy to stimulate economic growth True Fals D Question 28 1 pts A contractionary policy could be used to close an inflationary gap. O True O False