Automatic stabilizers are features of the economy that reduces its sensitivity to shocks, such as sharp increases or decreases in spending.

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Automatic stabilizers are government policies and programs that automatically adjust to offset economic fluctuations, without a specific action or intervention by policymakers. They are meant to reduce the impact of economic shocks and can include things like unemployment insurance, progressive income taxes, and welfare programs.

Automatic Stabilizers Are Features of the Economy That Reduces Its