Automatic stabilizers can be expected to:

Question

Quizplus · Accepted Answer

Automatic stabilizers, such as unemployment benefits and progressive taxation, help to mitigate the severity of economic fluctuations by automatically increasing government spending or decreasing taxes during recessions and doing the opposite during expansions. However, they are not typically powerful enough to fully correct severe recessions or inflation without additional discretionary fiscal or monetary policy actions.

Automatic Stabilizers Can Be Expected To