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Automatic Stabilizers

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PPGPortal > Home > Concept Dictionary > A > Automatic Stabilizers
Automatic Stabilizers

Changes in fiscal policy that stimulate aggregate demand when the economy goes into a recession which occur without policymakers having to take any deliberate action.

(Mankiw, N. Gregory, Ronald Kneebone, Kenneth J. McKenzie and Nicholas Rowe. 2008. Principles of Macroeconomics, 4th Canadian ed. Toronto: Thomson Nelson.)



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