Government programs that automatically implement countercyclical fiscal policy in response to economic conditions are called:

Question

Quizplus · Accepted Answer

Automatic stabilizers are government programs that automatically adjust tax rates and transfer payments in response to changes in the economy, with the aim of stabilizing economic fluctuations. As economic conditions change, these programs either increase or decrease government spending without specific legislative action. Examples of automatic stabilizers include unemployment insurance, progressive income taxes, and welfare programs.

Government Programs That Automatically Implement Countercyclical Fiscal Policy in Response