How built-in stabilizer work to reduce rise or fall in ad


1. What is the relationship between the multiplier and the marginal propensities? Explain.

2. What will be the effect of the different tools of fiscal policy to stabilize the economy? Give an example of a built-in stabilizer and explain how it would work to reduce this rise or fall in the level of AD.

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Microeconomics: How built-in stabilizer work to reduce rise or fall in ad
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