A major advantage of automatic stabilizers is that they:
a. guarantee that the federal budget will be balanced over the course of the business cycle.
b. require no legislative action by Congress to take effect
c. simultaneously stabilize the economy and reduce the size of the public debt.
d. automatically produce surpluses during recessions and deficits during economic booms.
b
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Use the following graph for a monopolistically competitive firm to answer the next question. 
This monopolistically competitive firm is earning economic profits in the short run and
A. will continue to have economic profits in the long run. B. this will cause its demand curve to shift to the right in the long run. C. will earn only normal profits in the long run. D. this will cause its cost curves to rise in the long run.
If society is experiencing a net social cost from the production of a good, this implies that
A. the socially optimal level of output is being produced and society is willing to accept the costs that result. B. producers would rather produce the output at which marginal social cost equals the demand for the good. C. negative externalities are involved in the production of this good. D. none of the above
Which of the following statements about population and migration is most accurate?
a. In the first decade after the Civil War many of the freedmen moved to the North. b. During most of US history more African Americans have lived in rural than urban areas. c. Latinos are expected to comprise a smaller fraction of US population in 2025 than they do now. d. Between 1810-1850 the population center of the US shifted from the Midwest to the east.
Professor Cowen says that fiscal policy would make more sense if we:
A. relied more heavily on tax cuts than we currently do for fiscal policy. B. ran government budget deficits in years in which the unemployment rate was high. C. used a combination of tax cuts and increases in government spending. D. actually had government budget surpluses in years in which the economy was in good health.