Fiscal policies that move the economy toward potential GDP without a change in policy are called

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Quizplus · Accepted Answer

Automatic stabilizers refer to fiscal policies that are already in place and automatically stabilize the economy towards potential GDP without the need for explicit government action. Examples include progressive income taxes, unemployment insurance, and welfare programs, which tend to automatically increase during a recession, providing support for households and increasing aggregate demand.

Fiscal Policies That Move the Economy Toward Potential GDP Without