Question

Anything that increases the government's budget deficit (or reduces its budget surplus) during a recession and increases its budget surplus (or reduces its budget deficit) during an expansion without requiring explicit action by policymakers is called what?

-Government spending
-A built-in stabilizer
-Corporate taxes
-Discretionary policy

Answer 1

Automatic stabilizers

Step-by-step explanation:

The term that refers to anything that increases the government's budget deficit (or reduces its budget surplus) during a recession and increases its budget surplus (or reduces its budget deficit) during an expansion without requiring explicit action by policymakers is known as automatic stabilizers.