Automatic stabilizers are provisions in the law which create automatic ______ in government spending or ______ in taxes when real output declines.
A)increases; increases
B)increases; decreases
C)no change; no change
D)decreases; decreases

Question

Quizplus · Accepted Answer

Automatic stabilizers are designed to increase government spending or decrease taxes when the economy slows down, helping to stabilize economic fluctuations without additional legislative action.

Automatic Stabilizers Are Provisions in the Law Which Create Automatic