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Progressive income taxation is an automatic fiscal stabilizer. Question 7 options: True False

Progressive income taxation is an automatic fiscal stabilizer. Question 7 options: True False

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The given statement is True and this is because of the fact that during the growth phase of the business cycle taxing more can get to equalise the disposable income of the individuals as in case of progressive taxation this can get to result in the stabilization of economy in terms of growth and income inequality on the whole. . Therefore 'True'is the answer for this question

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