Built-in stabilizers' functions are noted.

Related BrainMass Solutions

• Fiscal Policy

  These controls are built into the economy and so are called built in stabilizers.The progressive income tax (the major source of federal revenue) and the welfare system both act to increase aggregate demand in recessions and to decrease aggregate demand

• Discretionary fiscal policy versus automatic stabilizers

  Automatic stabilizers are built-in devices that ensure deficits in a recession and surpluses during booms.

• Economic Review

  List the three automatic stabilizers that are built into our economy. 6. Identify when the national debt went above the trillion-dollar mark for the first time. 7. Identify 3 fixed costs and 3 variable costs. 8.

• countercyclical fiscal policy

  For this reason, automatic stabilizers are considered a better type of fiscal policy. An example of countercyclical legislative policy changes could be a reduction in government hiring programs.

• Fiscal policy and automatic stabilizers

  97806 Fiscal policy and automatic stabilizers What are the problems with fiscal policy? What are automatic stabilizers? What are some examples? What are your thoughts about the limits of fiscal policy?

• examples of the automatic stabilizers

  Why is there an interest in using fiscal policy to stabilize the economy when the automatic stabilizers are available?

• Effects of imposing Proportional and Progressive Tax

  Progressive and proportional taxes are a form of automatic stabilizers. Automatic stabilizers serve to dampen the economy in times of prosperity and to lessen the effect of recessions.

• Structured Query Language (SQL) Preliminaries

  SELECT * FROM STUDENT WHERE grade >= 90; Structured Query Language (SQL) Preliminaries are noted in the solution.

• Automatic Stabilizers

  When income in general drops, there are more poor people eligible for these transfers and services, so spending on them increases. These taxes, transfers, and purchases are automatic stabilizers of the economy.