What are automatic stabilisers?

They are changes in taxation and spending that happen automatically as the economy moves through different phases of the busines cycle. For example the tax revenues increase as the economy expands and transfer payments, such as employment benefits, would decrease. 

NH
Answered by Naomi H. Economics tutor

2001 Views

See similar Economics IB tutors

Related Economics IB answers

All answers ▸

Show how an decrease in income tax will close a deflationary gap


Explain two possible government responses to the abuse of monopoly power.


What are the macroeconomic objectives?


In micro-economics, why is a demand curve downwards sloping?


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2025 by IXL Learning