Macroeconomics
How does a decrease in taxes affect the multiplier effect and GDP?
Why are government purchases not considered automatic stabilizers?
What is the inverse relationship between tax changes and household income?
How does the inverse relationship between tax changes and household income influence the multiplier effect?
On a graph showing GDP and taxes, how would automatic stabilizers appear during an economic boom?
How does a decrease in taxes affect disposable income?
What is disposable income?
What effect do automatic stabilizers have on consumption during economic booms?
What role do automatic stabilizers play during a recession?
