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Indicate whether each of the following would be considered an automatic stabilizer (last part of lecture and pg. 544):

  • 1. The president encourages Congress to decrease taxes prior to an election.
  • 2. A higher level of jobless claims results in an increase in total disbursements of unemployment compensation.
  • 3. An expansion in the economy increases the average person's income level, forcing some people into higher tax brackets.
  • 4. The US congress increases highway spending programs in order to benefit local businesses

Reference no: EM131086697

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