Provisions in the law that automatically increase government spending or decrease taxes when real output declines are called:
A)autonomous stabilizers.
B)automatic stabilizers.
C)the marginal propensity to consume.
D)the income-expenditure multiplier.

Question

Quizplus · Accepted Answer

Automatic stabilizers are provisions in the law that imply automatic increases in government spending or decreases in taxes when real output declines.

Provisions in the Law That Automatically Increase Government Spending or Decrease