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21-08-2020
Business

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Automatic stabilizers are provisions in the law that create automatic in government spending or in taxes when real output declines.

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ewomazinoade ewomazinoade

25-08-2020

Answer:

increase

decrease

Explanation:

Automatic stabilizers are provision in the law that automatically stabilise government spending and tax rate to stabilise the economy.

When output is falling, in order to prevent the economy slipping into a recession, the automatic stabilisers increase government spending and reduce taxes. These increases money supply

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