A law requiring the government to balance its budget in each year would serve as an 'automatic destabiliser'.

Question

Quizplus · Accepted Answer

A law requiring the government to balance its budget in each year would constrain the government's ability to engage in fiscal policy measures such as deficit spending during times of economic downturns, which can help stabilize the economy. This can serve as an 'automatic destabilizer' as the economy would not have access to enough government spending during such times, potentially worsening the situation.

A Law Requiring the Government to Balance Its Budget in Each