Governments engage in _______ to increase aggregate demand during a recession and to invigorate the economy.
A)Growth stabilizers
B)Automatic stabilizers
C)Aggregate stabilizers
D)Supply stabilizers

Question

Quizplus · Accepted Answer

Governments engage in automatic stabilizers to increase aggregate demand during a recession and to invigorate the economy.
Key Takeaway: Automatic stabilizers such as the taxation system, as well as other forms of government investment increase aggregate demand during a recession. The goal behind using automatic stabilizers is to stimulate the economy without taking deliberate action.

Governments Engage in _______ to Increase Aggregate Demand During a Recession