Automatic stabilizers are provisions in the law that imply automatic ________ in government spending or _______ in taxes when real output declines.

Question

Quizplus · Accepted Answer

Automatic stabilizers imply automatic increases in government spending or decreases in taxes when real output declines, which can help to stimulate the economy and mitigate the effects of a recession. This is why B is the best choice, as it correctly identifies the relationship between the two variables.

Automatic Stabilizers Are Provisions in the Law That Imply Automatic