As fiscal policy, the welfare system serves as one of the

Question

Quizplus · Accepted Answer

The welfare system serves as an automatic stabilizer in fiscal policy, which means that it helps to stabilize the economy during times of economic downturns or recessions by automatically increasing government spending on welfare programs like food stamps or unemployment benefits. This increased government spending helps to boost consumer spending and ultimately support overall economic growth.

As Fiscal Policy, the Welfare System Serves as One of the