Programs that automatically increase government spending (relative to revenue) during a recession and automatically decrease government spending (relative to revenue) during an economic boom are called:
A) discretionary fiscal policy.
B) supply-side programs.
C) automatic stabilizers.
D) tax credits.

Question

Quizplus · Accepted Answer

Automatic stabilizers are programs that automatically increase government spending (relative to revenue) during a recession and automatically decrease government spending (relative to revenue) during an economic boom without requiring explicit action by policymakers.

Programs That Automatically Increase Government Spending (Relative to Revenue) During