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Automatic Stabilizers

Tax Form 1040

Tax Form 1040

Taxes are a part of the automatic stabilizers a country uses to minimize fluctuations in their real GDP. During boom times when the economy is doing well, people earn more income and this translates to higher tax revenues for the government, lowering the budget deficit.

Source

    Boundless vets and curates high-quality, openly licensed content from around the Internet. This particular resource used the following sources:

    "Form 1040, 2005."
    http://commons.wikimedia.org/wiki/File:Form_1040,_2005.jpg Wikimedia CC BY-SA.

Related Terms

  • fiscal multiplier
  • automatic stabilizer
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