Figure 5-1

-In Figure 5-1 above,the impact of automatic stabilization is depicted by the movement from

Question

Figure 5-1
 
-In Figure 5-1 above,the impact of automatic stabilization is depicted by the movement from

Quizplus · Accepted Answer

Automatic stabilizers work to dampen economic fluctuations without the need for explicit government intervention. When the economy moves from point A to point B, it indicates the effect of automatic stabilizers such as unemployment benefits or progressive taxes that automatically increase or decrease net government spending in response to economic changes, helping to stabilize the economy.

Figure 5-1 -In Figure 5-1 Above,the Impact of Automatic Stabilization Is Depicted