Would there be any automatic stabilizers government budget

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Q. Suppose all tax collections are fixed (instead of dependent on income) and all spending and transfer programs are fixed (in sense that y do not depend then the state of economy, as, for example, unemployment benefits now do). In this case, would re be any automatic Stabilizers in government budget? Would re be any distinction between full-employment deficits and actual beget deficit? Explain.

 

 

Reference no: EM1372484

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