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Give Two Examples of Automatic Stabilizers,and Explain Why They Are

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Essay

Give two examples of automatic stabilizers,and explain why they are an important component of fiscal policy.


Definitions:

Deregulation

Deregulation involves the reduction or elimination of government power in a particular industry, often with the intention of increasing competition and fostering innovation.

Free Market Principles

Economic policies and systems that rely on supply and demand free from government intervention to govern market operations.

Information Flow

Describes the transfer and dissemination of information from its source to receivers through various channels or media.

War Times

Periods during which a country is engaged in armed conflict.

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