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  • 07-05-2021
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why are public transfer payments considered an automatic stabilizer

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kaylekurtz
kaylekurtz kaylekurtz
  • 07-05-2021

Answer:

The best-known automatic stabilizers are progressively graduated corporate and personal income taxes, and transfer systems such as unemployment insurance and welfare. Automatic stabilizers are called this because they act to stabilize economic cycles and are automatically triggered without additional government action.

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