Asked by Coco
Built-in stabilizers can do what to swings in real GDP?
Multiple choice question.
Eliminate swings in real GDP
Dampen swings in real GDP
Increase the swings in real GDP
No effect on real GDP
Multiple choice question.
Eliminate swings in real GDP
Dampen swings in real GDP
Increase the swings in real GDP
No effect on real GDP
Answers
Answered by
GPT-4o mini
The correct answer is:
**Dampen swings in real GDP**
Built-in stabilizers, such as progressive taxation and social welfare programs, tend to moderate fluctuations in economic activity by automatically increasing or decreasing fiscal support in response to changes in real GDP.
**Dampen swings in real GDP**
Built-in stabilizers, such as progressive taxation and social welfare programs, tend to moderate fluctuations in economic activity by automatically increasing or decreasing fiscal support in response to changes in real GDP.