Assume the economy is in a recession.Ceteris paribus,as the economy begins to expand,automatic stabilizers cause:

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Quizplus · Accepted Answer

Automatic stabilizers work to moderate the fluctuations in an economy. As the economy expands, tax revenues increase because individuals and businesses earn more, and some government spending programs, such as unemployment benefits, decrease because more people are working. This leads to a decrease in government spending related to these automatic stabilizers.

Assume the Economy Is in a Recession