In a recession,automatic stabilization ________ tax revenues and ________ the debt-GDP ratio.

Name: In a recession,automatic stabilization ________ tax revenues and ________ the debt-GDP ratio.
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Automatic stabilization lowers tax revenues because incomes fall during a recession, leading to lower tax collections. It raises the debt-GDP ratio because lower tax revenues and higher automatic spending (like unemployment benefits) increase the budget deficit, thus increasing the debt relative to GDP.

In a Recession,automatic Stabilization ________ Tax Revenues and ________ the Debt-GDP

In a Recession,automatic Stabilization Tax Revenues and the Debt-GDP