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3.9 Automatic Stabilizers

Part of National Income and Price Determination in AP® Macroeconomics. Read the opening section, then create a free account for the full interactive lesson, practice, and progress tracking.

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Types of Fiscal Policy

Fiscal policy involves government actions to influence economic activity through changes in spending and taxation. This policy can be categorized into two main types: discretionary fiscal policy and non-discretionary fiscal policy (also known as automatic stabilizers). Understanding these concepts helps in grasping how governments manage economic fluctuations and stabilize the economy.

In this unit

9 lessons

  1. 3.1Aggregate Demand (AD)Preview lesson
  2. 3.2MultipliersPreview lesson
  3. 3.3Short-Run Aggregate Supply (SRAS)Preview lesson
  4. 3.4Long-Run Aggregate Supply (LRAS)Preview lesson
  5. 3.5Equilibrium in the AD–AS ModelPreview lesson
  6. 3.6Changes in the AD-AS ModelPreview lesson
  7. 3.7Long-Run Self-AdjustmentPreview lesson
  8. 3.8Fiscal PolicyPreview lesson
  9. 3.9Automatic StabilizersThis lesson

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