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Corruption issues mean that not all reaches

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Firms and households in many countries typically pay relatively little tax (compared to higher income countries) and receive few benefits when they lose their jobs.[1] Discuss the role of automatic stabilisers in these countries in stabilising the fluctuations in GDP.

[1] Households and firms can pay lots of taxes but corruption issues mean that not all reaches the government's budget.

Government spending is difficult to change and not easy to implement. Explain.

Reference no: EM132153437

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