During an economic expansion, automatic stabilizers

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During an economic expansion, automatic stabilizers (such as unemployment benefits and progressive income taxes) help to keep the economy from generating inflationary pressures by reducing aggregate demand. This is because as the economy grows, more people will be employed and paying taxes, and fewer people will be receiving unemployment benefits, which reduces the amount of money flowing into the economy. This helps to prevent the economy from overheating and causing inflation.

During an Economic Expansion, Automatic Stabilizers