Medicaid, food stamps, and sales taxes are all automatic stabilizers.

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Automatic stabilizers refer to government programs or policy measures that automatically adjust themselves to cushion the economy against shocks without any additional government action. Medicaid, food stamps, and sales taxes are all examples of automatic stabilizers. Medicaid and food stamp programs provide assistance to low-income households during economic downturns, while sales taxes automatically reduce during recessions as consumer spending decreases.

Medicaid, Food Stamps, and Sales Taxes Are All Automatic Stabilizers