Assume the economy is in a recession and has a budget deficit. Ceteris paribus, if the economy starts expanding, automatic stabilizers will cause

A. An increase in government spending.
B. A decrease in tax revenues.
C. A decrease in inflation.
D. A decrease in the budget deficit.


Answer: D

Economics

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Consider two Cournot competitors selling complementary goods with demand curves given by:

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Labor productivity measures:

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Economics