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There are three parts to this assessment. Be sure you have completed all three parts before submitting.

Part 1

• Analyze the effect of built-in (or automatic) stabilizers on a country's economy.

o Explain how built-in stabilizers work.

o Explain the differences between proportional, progressive, and regressive tax systems as they relate to an economy's built-in stability.

Part 2

• Analyze the concept of the multiplier effect.

o How does this concept relate to both economic recessions and vigorous economic expansion?

Part 3

• Explain the impact of an increase in net exports on real GDP, assuming the economy is operating below its potential output.

• Explain why it is difficult for a country to boost its net exports by increasing its tariffs during a global recession.

Organize your assessment logically with appropriate headings and subheadings. Support your work with at least 3 scholarly or professional resources and follow APA guidelines for your citations and references. Be sure you include a title page and reference page.

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