National Income and Price Determination

It increases.

It remains constant by law.

It fluctuates daily based on stock market performance.

It decreases significantly.

Automatic stabilizers have no impact on the economy during rapid growth.

Increased government spending rapidly boosts aggregate demand, leading to higher economic growth.

Reduced taxation stimulates consumer spending, driving economic growth further.

Increased tax revenues naturally slow down aggregate demand as incomes rise.

Aggregate demand by increasing consumer saving rates during economic uncertainty.

It lessens the decline in aggregate demand by providing payments to those who lost their jobs so they can continue spending.

It increases total production capacity immediately creating more jobs across all sectors.

It significantly enhances aggregate supply leading to lower prices and higher production outputs.

Decreased interest rates on consumer loans indefinitely.

Increased availability of luxury goods and services.

Greater purchasing power predictability.

Immediate reduction in all product prices.

They provide tax breaks to businesses to discourage layoffs.

They reduce interest rates to stimulate borrowing and investment.

They increase government spending automatically when unemployment rises.

They encourage workers to save more money during economic downturns.

Interest rates

Government subsidies

Export levels

Tax revenues

To offset fluctuations in economic activity and stabilize the economy

To eliminate budget deficits during recessions

To increase government spending in times of economic boom

To prevent inflation from occurring

They offer subsidies to businesses that correspond with the level of real GDP growth or decline.

They impose higher taxes on imports to adjust trade balances according to GDP changes.

They naturally increase tax revenues during expansions and decrease them during recessions, moderating economic fluctuations.

They fix tax rates regardless of GDP changes, providing consistency for long-term economic planning.

They contribute to budget deficits

They have no impact on government finances

They reduce the need for government spending

They lead to budget surpluses

Privatizing vaccine production entirely

Increasing patent protections on pharmaceuticals

Offering vaccinations free-of-cost or subsidized prices

Placing tariffs on imported medicines