Solution-What are automatic fiscal stabilizers

What are automatic fiscal stabilizers

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Reference no: EM132617617

-What are automatic fiscal stabilizers? How do these stabilizers stabilize real GDP in the face of AD and AS shocks?

-What is the role of the simple multiplier [ 1/{1 - MPC(1 - t) - m}] in stabilization of the swings in real GDP?

-How the slope of the AD curve affects the stability of real GDP in the presence of AS shocks?

-How the automatic stabilizers depend on the sizes of MPC, t, and m.

Reference no: EM132617617

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What are automatic fiscal stabilizers : What are automatic fiscal stabilizers? How do these stabilizers stabilize real GDP in the face of AD and AS shocks?

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What are automatic fiscal stabilizers

Reference no: EM132617617

Reference no: EM132617617

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