Question

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and, my question is : The property of a government tax and spending system that cushions income changes in the private sector is called?

Answer 1

A decrease in taxes has the opposite effect on income, demand, and GDP. It will boost all three, which is why people cry out for a tax cut when the economy is sluggish. When the government decreases taxes, disposable income increases. That translates to higher demand (spending) and increased production (GDP).