Automatic stabilizers, such as tax revenues and transfer payments, eliminate fluctuations in the business cycle.

Name: Automatic stabilizers, such as tax revenues and transfer payments, eliminate fluctuations in the business cycle.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Automatic stabilizers can help to reduce the severity of fluctuations in the business cycle, but they do not completely eliminate them. They can only provide a cushion to the economy during recessions or expansions.

Automatic Stabilizers, Such as Tax Revenues and Transfer Payments, Eliminate