... will operate as an automatic stabilizer as fewer people rise into higher tax brackets and some fall into lower tax brackets 181 182 25 CHAPTER 13 Why might a stimulus come too late? What are the... interest rate decreases—crowds out—investment 169 170 CHAPTER 13 Answers to the Study Plan Problems and Applications Use the following news clip to work Problems and Economy Needs Treatment It’s... capital stock, which means that aggregate supply does not increase as much as otherwise so that U.S economic growth will be slower 183 184 CHAPTER 13 28 Payroll Tax Cut Is Unlikely to Survive Into