Other things the same, automatic stabilizers tend to
A)raise expenditures during expansions and recessions.
B)lower expenditures during expansions and recessions.
C)raise expenditures during recessions and lower expenditures during expansions.
D)raise expenditures during expansions and lower expenditures during recessions.

Question

Quizplus · Accepted Answer

Automatic stabilizers are economic policies and programs designed to offset fluctuations in a nation's economic activity without intervention by the government or policymakers. They raise expenditures during recessions by increasing government spending or decreasing taxes to stimulate the economy, and lower expenditures during expansions by doing the opposite to cool down the economy. This helps to moderate the business cycle.

Other Things the Same, Automatic Stabilizers Tend to