What are automatic fiscal stabilizers

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What are automatic fiscal stabilizers? How do these stabilizers stabilize real GDP in the face of AD and AS shocks? o What is the role of the simple multiplier [ 1/{1 – MPC(1 – t) – m}] in stabilization of the swings in real GDP? o How the slope of the AD curve affects the stability of real GDP in the presence of AS shocks? o How the automatic stabilizers depend on the sizes of MPC, t, and m.

Reference no: EM131082055

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