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How Do Automatic Stabilizers,on Both the Expenditure and Revenue Sides

question 87

Essay

How do automatic stabilizers,on both the expenditure and revenue sides of the budget,respond during a recession?


Definitions:

Coercive Power

The capability to force someone to perform a desired action through threats or punishment.

Referent Power

A form of influence based on the loyalty and respect one commands due to personal traits or charisma, rather than a formal position or authority.

Uncertainty

The state of having limited knowledge about a situation, making outcomes unpredictable.

Discretion

Discretion refers to the freedom to decide what should be done in a particular situation, often involving judgment and the choice to act or not act.

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