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QUESTION

Most macroeconomists believe it is a good thing that taxes act as automatic stabilizers and lower the size of the multiplier.

Most macroeconomists believe it is a good thing that taxes actas automatic stabilizers and lower the size of the multiplier.However, a smaller multiplier means that the change in governmentpurchases of goods and services, government transfers,or taxes necessary to close an inflationary or recessionarygap is larger. How can you explain this apparent inconsistency?

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