Because automatic stabilizers lower transfer payments and raise tax receipts as an economy recovers from a recession, they:

Question

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Automatic stabilizers work by reducing the impact of economic fluctuations. As the economy recovers, increased tax receipts and lower transfer payments (like unemployment benefits) effectively withdraw money from the economy, which can slow down the pace of recovery by reducing overall demand.

Because Automatic Stabilizers Lower Transfer Payments and Raise Tax Receipts