Question: Regarding stabilization policy ( see Mankiw's chapter on Stabilization policy ) , only one statement below is correct. Which one is it ? Group of

Regarding stabilization policy (see Mankiw's chapter on Stabilization policy), only one statement below is correct. Which one is it?
Group of answer choices
An expansionary fiscal policy such as an increase in government expenditures and/or transfers will shift the investment function upward.
Stabilization policy protects the economy from responding too strongly to every supply shock or to movements in aggregate demand.
GDP per capita is recognized worldwide as the only true measurement of economic wellbeing.
Automatic stabilizers fully correct all swings in the business cycle.
Stabilization policy instruments such as unemployment benefits and progressive income taxes increase the multiplier.

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