A major benefit of automatic stabilizers is that they

Question

Quizplus · Accepted Answer

Automatic stabilizers moderate the effect of fluctuations in the business cycle by providing automatic adjustments to government spending and taxes based on economic conditions. For example, during a recession, automatic stabilizers would increase government spending on unemployment benefits and decrease taxes, which would help to stimulate the economy. Conversely, during an economic boom, automatic stabilizers would decrease government spending and increase taxes, which would help to prevent the economy from overheating.

A Major Benefit of Automatic Stabilizers Is That They