Automatic Stabilizers
AP Macroeconomics · Flashcards
AP MACROECONOMICS · FLASHCARDS
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QUESTION
How do automatic stabilizers affect budget deficits during recessions?
QUESTION
Which type of tax system strengthens the effect of automatic stabilizers?
QUESTION
What is a key feature of automatic stabilizers compared to discretionary policy?
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ANSWER
They activate without new government action. Built into existing laws, they respond without new legislation.
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