A set of rules and regulations leading to a tax policy that is T=To+t*GDP is a) countercyclical b) stabilizes the economy in case of external shocks, hence called automatic stabilizer. none a and b a but not b b but not a

A set of rules and regulations leading to a tax policy that is T=To+t*GDP is a) countercyclical b) stabilizes the economy in case of external shocks, hence called automatic stabilizer. none a and b a but not b b but not a

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter15: Macroeconomic Viewpoints: New Keynesian, Monetarist, And New Classical

Section: Chapter Questions

Problem 14E

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Question

A set of rules and regulations leading to a tax policy that is T=T,+t*GDP is
a) countercyclical
b) stabilizes the economy in case of external shocks, hence called automatic
stabilizer.
none
a and b
a but not b
b but not a

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