Fiscal policies that help an economy in a recession without additional actions by policy makers are called

Question

Quizplus · Accepted Answer

Automatic stabilizers are fiscal policies that are designed to mitigate the impact of economic fluctuations without the need for any additional actions by policy makers. These policies automatically increase government spending and decrease taxes during a recession, which helps to boost aggregate demand and stabilize the economy. Examples of automatic stabilizers include unemployment insurance, welfare payments, and progressive income taxation.

Fiscal Policies That Help an Economy in a Recession Without