Ongoing government programs that cause countercyclical changes in taxes and government spending during the business cycle without additional current approvals by the legislature are called:
A) neutral solutions.
B) built-in solutions.
C) integrated stabilizers.
D) automatic stabilizers.

Question

Quizplus · Accepted Answer

Automatic stabilizers are government programs that automatically adjust taxes and spending in response to economic changes, helping to mitigate the effects of economic fluctuations without the need for new legislative action.

Ongoing Government Programs That Cause Countercyclical Changes in Taxes and Government