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How Are Automatic Stabilizers Used To Combat Inflation?
Beginning of paper
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In today's economy, there are devices present called automatic
stabilizers. Automatic stabilizers, are mechanisms which aid in the correction
of an economic problem without the interference of anyone or anything. They are
perhaps most useful to combat demand - pull inflation. Demand - pull inflation,
is when prices rise because the .... Middle of paper
.... spendings, are the spending that the government make with
the tax revenues, and they add to the gross domestic product. An automatic
stabilizer that will lower gross domestic product is welfare. As income rises,
there are less people who need welfare, therefore reducing the amount of
government spending, and lowering the gross domestic product.
Due to such automatic stabilizers as progressive tax rates and the
decrease of government spendi ....
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Number of words: 386
Number of pages: 2 (approx. 250 words per double-spaced page)
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