Governments engage in ___________ to increase aggregate demand during a recession and to invigorate the economy.
A)growth stabilizers
B)automatic stabilizers
C)aggregate stabilizers
D)supply stabilizers

Question

Quizplus · Accepted Answer

Governments engage in automatic stabilizers to increase aggregate demand during a recession and to invigorate the economy.
Key Takeaway: Automatic stabilizers such as the taxation system as well as other forms of government investment increase aggregate demand during a recession. The goal behind using automatic stabilizers is to stimulate the economy without taking deliberate action.

Governments Engage in ___________ to Increase Aggregate Demand During a Recession