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If automatic stabilizers increase the federal budget balance by $60 billion for every 1 percent increase...
If automatic stabilizers increase the federal budget balance by $60 billion for every 1 percent increase in real GDP growth, what will happen to the federal budget balance if the economy falls into a recession of −3 percent from a growth path of +2 percent?
Instructions: If you are entering any negative numbers, be sure to include a negative sign (-) in front of those numbers.
Change in GDP Growth Rate Change in Budget Balance
billion
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