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In this situation, the injections are equal to leakages and will therefore have no overall effect on the level of aggregate and economic activity.
Changes in the methods of revenues collection and expenditure can affect the distribution of income and the patterns of resource allocation in Australia's economy...
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However the level of revenue and expenditure may also change in response to the changing economic conditions without the deliberate decisions of the government. As these adjustments are beyond the control of the government, they are known as automatic stabilizers which are policies operated to counterbalance the trend in the level of economic growth and stabilize the economy...
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