Automatic stabilizers in the United States are:

Question

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Automatic stabilizers refer to changes in transfer payments (such as unemployment benefits) and tax revenues that automatically adjust to changes in economic conditions. During times of economic recession, more people are unemployed and therefore receive more transfer payments while also paying less in taxes, which helps to stimulate the economy. Conversely, during times of economic expansion, transfer payments decrease and tax revenues increase, which helps to slow down the economy and prevent overheating. The Federal Reserve System is responsible for controlling monetary policy, not automatic stabilizers. Additionally, while automatic stabilizers can help address some of the lag problems associated with fiscal policy, they cannot completely eliminate them.

Automatic Stabilizers in the United States Are