Economics · Economy
Automatic fiscal stabilizers are defined as:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Changes in government expenditure that lead to a continuous increase in national income levels
- 2Variables that lead to a permanent increase in public revenue
- 3Changes in the level of income that occur due to deliberate changes in tax rates and government transfer payments
- 4Changes in taxes and government transfer payments that occur automatically when the level of income changes✓
Correct answer
Changes in taxes and government transfer payments that occur automatically when the level of income changes
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