Provisions in the law that imply automatic increases in government spending,or decreases in taxes,when real output declines are called

Question

Quizplus · Accepted Answer

Provisions in the law that imply automatic increases in government spending, or decreases in taxes, when real output declines are known as automatic stabilizers. These stabilizers help to reduce the impact of economic fluctuations by automatically increasing government spending or decreasing taxes during a recession or other economic downturn.

Provisions in the Law That Imply Automatic Increases in Government