Government programs that automatically implement countercyclical fiscal policy in response to economic conditions are called automatic
A) stabilizers.
B) policies.
C) balancers.
D) equalizers.
E) holders.

Question

Quizplus · Accepted Answer

Automatic stabilizers are government programs that automatically implement countercyclical fiscal policy in response to economic conditions. They help stabilize the economy by increasing government spending and reducing taxes during economic downturns, which can help stimulate demand and provide a safety net for individuals and businesses. Conversely, during periods of economic expansion, automatic stabilizers decrease government spending and increase taxes, which can help prevent overheating of the economy and control inflation.

Government Programs That Automatically Implement Countercyclical Fiscal Policy in Response