explain how automatic fiscal stabilisers may help, Microeconomics

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explain how automatic fiscal stabilisers may help

Explain how automatic (fiscal) stabilisers may help to lower fluctuations in the business cycle.

Definition of automatic stabilisers as built-in to the system in terms of transfer payments (unemployment/welfare advantages) and a progressive taxation system. Define the effects on AD during phases of the business cycle.

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Microeconomics: explain how automatic fiscal stabilisers may help

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Microeconomics: explain how automatic fiscal stabilisers may help

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