An increase in tax receipts during an economic boom is an example of an automatic stabilizer in an economy.

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Automatic stabilizers refer to government policies or programs that help stabilize the economy without any intervention from policymakers. An increase in tax receipts during an economic boom is an example of an automatic stabilizer because as incomes and profits rise, tax revenues increase, which helps to reduce budget deficits and stabilize the economy.

An Increase in Tax Receipts During an Economic Boom Is