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    Contemporary Economics
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    Exam 13: Fiscal Policy and the Federal Budget
  5. Question
    Automatic Stabilizers Work by Preventing Aggregate Demand from Decreasing as Much
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Automatic Stabilizers Work by Preventing Aggregate Demand from Decreasing as Much

Question 74

Question 74

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Automatic stabilizers work by preventing aggregate demand from decreasing as much in bad times and rising as much in good times, thus helping to stabilize the economy.

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