Refer to the above diagram wherein T is tax revenues and G is government expenditures.All figures are in billions.This diagram portrays the notion of:

Question

Quizplus · Accepted Answer

The diagram illustrates built-in stability, as both tax revenues (T) and government expenditures (G) automatically decrease during an expansionary phase and increase during a contractionary phase. This automatic adjustment helps stabilize the economy without the need for discretionary fiscal policy.

Refer to the Above Diagram Wherein T Is Tax Revenues