are revenue and spending items in the federal budget that change with the ups and downs in an economy so as to stabilize disposable income, consumption, and real gdp. a. discretionary fiscal policies b. discretionary monetary policies c. automatic stabilizers d. multiplier

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25-10-2022
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are revenue and spending items in the federal budget that change with the ups and downs in an economy so as to stabilize disposable income, consumption, and real gdp. a. discretionary fiscal policies b. discretionary monetary policies c. automatic stabilizers d. multiplier

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contexto1028 contexto1028 · Answer 1 · 2022-10-28T19:31:36+02:00

Any portion of the public budget that balances changes in aggregate demand is referred to as an automatic stabilizer.

During a recession, they lower taxes and boost government spending to balance out demand variations; during an expansion, they do the exact reverse.

What ways does the federal budget act as a built-in economic stabilizer?

Automatic Stabilizers and Budgetary Impact By design, automatic stabilizers increase budget deficits during economic downturns and decrease them during economic upturns. Stabilizers' increased budget deficits during recessions are intended to boost the economy's overall demand and lessen economic losses.

What kinds of stabilizers are automatic?

Corporate and personal income taxes that are gradually graduated, or set in proportion to the taxpayer's income levels, are a typical type of automatic stabilizers. Other instances include transfer programs like poverty, unemployment insurance, stimulus cheques, and so forth.

To learn more about automatic stabilizer from the given link.

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