The economic impact of automatic stabilizers during ________ periods is to decrease taxes.
A) inflationary
B) recessionary
C) expansionary
D) growth

Question

Quizplus · Accepted Answer

Automatic stabilizers are policies built into the economic system that help to stabilize fluctuations in economic activity without direct intervention from policymakers. During recessionary periods, automatic stabilizers work to increase government spending and decrease taxes, which helps to boost economic activity and reduce the severity of the recession. Therefore, the economic impact of automatic stabilizers during recessionary periods is to decrease taxes.

The Economic Impact of Automatic Stabilizers During ________ Periods Is