1. If the economy is to have significant built-in stability, then when real GDP increases, the tax revenues should:
a. Fall proportionately more than the change in GDP
b. Fall proportionately less than the change in GDP
c. Rise proportionately more than the change in GDP
d. Rise proportionately less than the change in GDP
2. The short-run aggregate supply curve:
a. Becomes flatter at output levels above the full-employment output
b. Becomes steep at output levels above the full-employment output
c. Is upward-sloping with a constant slope
d. Is horizontal