The stabilizer arises because if an economy moves into a recessionary gap, tax revenues fall and transfers rise, while if it moves into an inflationary gap, tax revenues rise and transfers fall

The stabilizer means that if the government balances its budget when output is at its potential level, then it will have a deficit in a recessionary gap and a surplus in an inflationary gap

If output moves away from its potential level, the stabilizer ensures that it will eventually return to it

The stabilizer would be stronger if the government imposed higher taxes on people with high incomes and paid higher transfers to the unemployed

It makes output changes smaller than they would otherwise be, but prices changes larger than they would otherwise be.

It makes output changes the same as they would otherwise be, but prices changes larger than they would otherwise be

It makes both output changes and price changes smaller than they would otherwise be

It makes output changes the same as they would otherwise be, but prices changes smaller than they would otherwise be

Even if a country acquired no extra resources, its output could grow

Even if a country had no technological progress, its total factor productivity could increase

Even if a country’s workforce stayed the same, there could be an increase in human capital

If a country’s GDP per head rose by 3% a year, it would take about 33 years for its output GDP per head to double

There might be an increase in household production.

There might be an increase in production by the underground economy

There might be an increase in exports

There might be an increase in leisure

Growth is no help in efforts to ease relative poverty

Over a period of time when economic welfare increased, total welfare could decrease

If a country decides to invest in more capital this year, then living standards may initially fall and yet in time be higher than they would otherwise have been

Growth has reduced drudgery