Built-in stability arises from net tax revenues, which vary directly with the level of GDP. During recession,

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Built-in stability arises from net tax revenues, which vary directly with the level of GDP. During recession, the Federal budget automatically moves toward a stabilizing deficit; during expansion, the budget automatically moves toward an anti-inflationary surplus. Built-in stability lessens, but does not fully correct, undesired changes in real GDP.

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Economics Principles Problems And Policies

ISBN: 9780073511443

19th Edition

Authors: Campbell Mcconnell ,Stanley Brue ,Sean Flynn

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