Automatic Stabilizers (Economics) - Explained
What are Automatic Stabilizers?
Written by Jason Gordon
Updated at March 28th, 2023
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What are Automatic Stabilizers?
Changes in tax and spending levels can also occur automatically, due to automatic stabilizers, such as unemployment insurance and food stamps, which are programs that are already laws that stimulate aggregate demand in a recession and hold down aggregate demand in a potentially inflationary boom.
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