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From course:

Economics A Level (DONEEEEEEE)

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Question:

What are Automatic Stabilisers in terms of Fiscal Policy?

Author: eric_galvao



Answer:

-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


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