Tax policy act as automatic stabilizers for macro economy

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How does a government spending and tax policy act as automatic stabilizers for the macro economy? Given the logic of the automatic stabilizers, why should we be concerned about deficit cutting efforts during a recession? What types of lags in fiscal policy are avoided by the automatic stabilizers? Why might we want to eliminate the deficits caused by fiscal stabilizers before a recession ends?

Reference no: EM13894190

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