A political leader suggesting that an economic downturn will be cushioned automatically is referring to the automatic actions resulting from

Question

Quizplus · Accepted Answer

A progressive income tax and a welfare state are examples of automatic stabilizers in an economy. These mechanisms work without the need for new government intervention, helping to moderate the fluctuations of the business cycle by automatically increasing government spending or decreasing tax revenue as economic conditions worsen.

A Political Leader Suggesting That an Economic Downturn Will Be