Question: How do automatic stabilizers work when the economy faces an inflationary gap? ( ( a ) ) Tax rates increase and welfare payments increase. (

How do automatic stabilizers work when the economy faces an inflationary gap?

((a)) Tax rates increase and welfare payments increase.

((b)) Tax rates increase and welfare payments decrease.

((c)) Tax rates decrease and welfare payments increase.

((d)) Tax rates decrease and welfare payments decrease.


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