automatic stabilizers have the effect of group of answer choices inflation. increasing the long-run supply curve. reducing recessionary gaps. eliminating all recessions.

Respuesta :

Automatic Stabilizers are frameworks included in government spending that, without the consent of officials, increase or decrease spending whenever growth is faltering.

• The most well-known mandatory stabilizers appear to be rising personal income contributions and payment plans that include things like retirement benefits or government aid.Automatic stabilizers are adjustments to taxes and spending that take place automatically in response to changes in the economy and replicate discretionary fiscal policy.As more people become eligible for various programs, transfer payments, as one example, generally rise during recessions. As recipients of transfers boost their consumption, overall demand rises. The same objective of raising aggregate demand may be pursued via discretionary fiscal policy during a recession.The fact that automatic stabilizers operate automatically and discretionary fiscal policy necessitates government action is a significant distinction.

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