Question:
What are Automatic Stabilisers in terms of Fiscal Policy?
Author: eric_galvaoAnswer:
-Government's Fiscal Policy may be Automatic to the Changes in the Economic Cycle. eg During a Recession, more Benefits will be dished out while less Taxation will be Received. This will Reduce the Problems a Recession causes, but this creates a Budget Deficit -The same happens with a Boom. Less dished on Benefits while More in Taxation
0 / 5 Â (0 ratings)
1 answer(s) in total