Suppose that for every 1 percentage point increase (decrease) in GDP growth, automatic stabilizers 1. Increase (decrease)
Question:
Suppose that for every 1 percentage point increase (decrease) in GDP growth, automatic stabilizers
1. Increase (decrease) tax revenues by $90 billion and
2. Decrease (increase) transfer payments by $30 billion.
Using this information, complete the table.
Transcribed Image Text:
Change In Transfer Change In Tax Change Change In Budget In GDP Growth Balance (billions) Revenue Payments (billions) (billions) Rate -2% +1% +3%
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