Give an Example of an Automatic Stabilizer

question 183

Essay

Give an example of an automatic stabilizer.Explain how automatic stabilizers work in the case of recession.

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Definitions:

Economic Model

Simplified representations of complex economic processes designed to help understand, explain, and predict economic phenomena.

Real Situation

Pertains to actual events or circumstances as they exist in reality, without hypothetical modifications.

Economic Models

Simplified versions of reality used by economists to understand and predict economic behavior and outcomes.

Real World

A term referring to actual existence or happening in life, outside of theoretical constructs or simulated environments.