The economic impact of automatic stabilizers during ________ periods is to moderate economic downturns.
A) deflationary
B) recessionary
C) expansionary
D) inflationary

Question

Quizplus · Accepted Answer

Automatic stabilizers are fiscal policies that automatically activate during recessionary periods to help moderate economic downturns. They include unemployment benefits, progressive income taxes, and automatic corporate tax expenditures. These policies help inject more money into the economy, which can help mitigate the negative effects of a recession.

The Economic Impact of Automatic Stabilizers During ________ Periods Is