7.1 Fiscal Policy and Effect ⊙ Automatic stabilizer Also named interior stabilizer. It's a kind of mechanism existing in economic system Which can counteract the effects of shocks on output 友学经济学院 Automatic stabilizer ❖ Also named interior stabilizer. It’s a kind of mechanism existing in economic system which can counteract the effects of shocks on output. 7.1 Fiscal Policy and Effect