The economic impact of automatic stabilizers during recessionary periods is to
A) have no impact on the recession.
B) moderate the recession.
C) make the recession worse.
D) increase taxes.

Question

Quizplus · Accepted Answer

Automatic stabilizers are government policies that kick in automatically during times of economic hardship, such as during a recession. They include things like unemployment insurance and welfare programs, which help to provide support to those who have been most adversely affected by the downturn. By moderating the recession and helping to keep people afloat during difficult times, automatic stabilizers help to prevent the situation from spiraling further out of control, which can ultimately make it easier for economic recovery to take hold.

The Economic Impact of Automatic Stabilizers During Recessionary Periods Is