Employment insurance payments and social assistance payments,acting as automatic stabilizers,tend to reduce economic fluctuations because they automatically _________ during a recessionary gap and _________ during an expansionary gap.

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Employment insurance payments and social assistance payments increase during a recessionary gap, providing additional income to households and increasing aggregate demand. This helps to reduce the severity of the recessionary gap. Conversely, these payments decrease during an expansionary gap, which helps to reduce inflationary pressures and prevent the economy from overheating. Therefore, employment insurance payments and social assistance payments act as automatic stabilizers, helping to stabilize the economy.

Employment Insurance Payments and Social Assistance Payments,acting as Automatic Stabilizers,tend