Automatic Stabilizer Homework Help
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Automatic stabilizer can be considered as some sort of fiscal policy that are used to basically prevent the business fluctuations and these are done without any sort of interference and intervention of the policymakers. The importance of automatic stabilizer is described in Automatic Stabilizer Homework Help They are basically used to stabilize the economic cycle and they are automatically operated without any sort of explicit government action or instructions.. The detailed definition of the automatic stabilizer is given in Automatic Stabilizer Homework Help. Clients who are looking for various notes regarding automatic stabilizer can refer Automatic Stabilizer Homework Help.
Economics Homework help
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Various examples of Automatic Stabilizer
The automatic stabilizer has many examples out of which some are enlisted in the Automatic Stabilizer Help as below
1. Unemployment Insurance: – This can be considered as the money that is given to the people that are unemployed during their unemployment. This acts an automatic stabilizer because as the unemployment rate increases, greater no. of people use it and the people are preventing from going into poverty. This also prevents from the fluctuation of the business cycle.
2. Transfer payment: – In this case the money that is given to a person is paid by the taxes of the other people. So as the eligibility of a person to receive these payments mainly depends on the income and hence the fluctuations in the business cycle are prevented.
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