Provisions in the budget that cause government spending to rise or taxes to fall without legislation when GDP falls are known as

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Provisions in the budget that cause government spending to rise or taxes to fall without legislation when GDP falls are known as automatic stabilizers. These stabilizers help to stabilize the economy during times of recession by providing a boost to demand without requiring congressional action. Examples of automatic stabilizers include unemployment insurance and progressive income taxes.

Provisions in the Budget That Cause Government Spending to Rise