Automatic stabilizers refer in part to

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Automatic stabilizers refer to government spending and taxation policies that automatically adjust in response to changes in the economy, helping to stabilize economic activity without the need for explicit government intervention. When the economy is in a downturn, automatic stabilizers increase government spending on programs like unemployment benefits and decrease tax revenues as incomes fall, helping to boost demand and stabilize output. Similarly, in a period of economic expansion, automatic stabilizers reduce government spending and increase tax revenues, helping to prevent the economy from overheating.

Automatic Stabilizers Refer in Part to