Because of automatic stabilizers,in recessions the government budget deficit ________,while in expansion the deficit ________.

Question

Quizplus · Accepted Answer

Automatic stabilizers, like unemployment benefits and progressive taxes, increase government spending or decrease tax revenue during recessions, leading to a rise in the budget deficit. Conversely, during expansions, these stabilizers decrease spending or increase revenue, causing the deficit to fall.

Because of Automatic Stabilizers,in Recessions the Government Budget Deficit ________,While