automatic stabilizers are the tools of fiscal policy governed by the government of a country.these tools are helpful in the steady growth of the economy.
working of automatic stabilizers
in Peak period-
when economy is in boom situation and there is huge demand of goods and supply which result in the situation to inflation in the economy then this situation needed to be controlled.government decreases its public spending and increases tax rates in the economy which would help the government to maintain the equilibrium level.
in Depression period-
in recession/depression period government wants to increase the income and employment in the economy so government initiates public spending,economic incentives and reduces the tax.this boost up the economy and economy is again at equilibrium.
basis of taxation-
Explain how built-in (or automatic) stabilizers work. What are the differences between proportional, progressive, and regressive...
Explain how built-in (or automatic) stabilizers work. What are the differences between proportional, progressive, and regressive tax systems as they relate to an economy’s built-in stability?
** LUIE detination Fiscal policy Budget deficit Budget surplus National Debt Marginal Tax Rate Progressive tax Regressive tax Deficit Dove Deficit Hawk Automatic Stabilizers Laffer curve 1. Use the loanable funds model to explain why classicals argue that government deficits crowd out private spending. Explain why Keynesians argue that government deficits crowd in private spending. 2. Explain the logic behind "trickle down economics" (i.e the supply-side argument in favor of cutting taxes on the wealthy). Explain why Keynesians don't believe...
a) Explain how automatic stabilizers work, both on the taxation side and on the spending side, first in a situation where the economy is producing less than potential GDP and then in a situation where the economy is producing more than potential GDP. b) Do you think the typical time lag for fiscal policy is likely to be longer or shorter than the time lag for monetary policy? Explain your answer c) How would a balanced budget amendment change the...
Explain what enterprise resource planning (ERP) systems. Outline several of their key characteristics. Describe in reasonable detail how a company leverages an ERP system and how its operations are improved after installing an ERP system like SAP. Explain how a supply chain management system helps an organization make its operations more efficient What is Upstream and Downstream management of the supply chain? Explain the concept of “Supply Network”, its benefits, and how technology made this concept available Explain the difference...
Assignment Details The Unit 6 Assignment requires you to consider how effective teams are built. Some considerations in this assignment include the traits of an effective team leader as well as the strategies one would use to recruit team members that would work effectively together. Using material from Chapter 12 of your text as well as the article in the supplemental reading (Rao, 2016), you will write an informative essay sharing best practices for effective team-building. Outcomes evaluated through this...