Q. When automatic fiscal stabilizers are in place, a shock that causes a fall in the kevel of economic activity automatically (Solved)
1. Results in a decline in the federal budget deficit that lessens the fall in income
2. Results in a rise in the federal deficit that lessens the fall in income
3. Requires the federal government to balance the budget
4. Will lead to a permanent increase in the budget deficit
- b. Results in a rise in the federal deficit that lessens the fall in income