Explain how automatic stabilization stimulates spending in a recession and dampens spending during periods of demand-pull inflation.

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Explain how automatic stabilization stimulates spending in a recession and dampens spending during periods of demand-pull inflation. How does automatic stabilization affect the federal budget deficit?

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Economics Theory And Practice

ISBN: 9781118949733

11th Edition

Authors: Patrick J. Welch, Gerry F. Welch

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Question Posted: Feb 06, 2024 11:07 AM

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Explain how automatic stabilization stimulates spending in a recession and dampens spending during periods of demand-pull inflation.

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During a recession automatic fiscal policy cushions the ...View the full answer

Economics Theory And Practice

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