Consider the economies of Kimberlei and Clarkistan, which are identical except that the multiplier in Kimberlei is smaller than that in Clarkistan. This means that Kimberlei's GDP is _______ Clarkistan's GDP to fluctuations in the components of total spending. Features of the economy that reduce its sensitivity to shocks are called automatic stabilizers Suppose again that the economies of Kimberlei and Clarkistan are identical except that Kimberlei has instituted personal income tax, whereas Clarkistan hasn't. Clarkistan's economy is _______ sensitive to fluctuations in GDP than Kimberle|'s economy. This is because the personal income tax has ______ Kimberle.'s multiplier.
