Automatic stabilizers
Definition
Automatic stabilizers are government policies or programs that automatically adjust to stabilize the economy during economic downturns or expansions, without the need for additional legislative action.
Related terms
Fiscal policy: Fiscal policy refers to the use of government spending and taxation to influence the overall health of the economy.
Economic activity: Economic activity refers to any action involving production, distribution, or consumption of goods and services within an economy.
Expansionary fiscal policy: Expansionary fiscal policy involves increasing government spending or reducing taxes to stimulate economic growth during a recession.
"Automatic stabilizers" appears in:
Study guides (1)
AP Macroeconomics - 3.9 Automatic Stabilizers
Practice Questions (11)
What are automatic stabilizers?
How do automatic stabilizers function during a recession?
How do income taxes act as automatic stabilizers?
How do automatic stabilizers help prevent inflation during an economic boom?
What is the impact of automatic stabilizers on government budgets during recessions and economic booms?
How do automatic stabilizers help mitigate the effects of negative supply shocks on the economy?
How do automatic stabilizers help maintain stable economic growth?
What is the primary goal of automatic stabilizers in the economy?
How do progressive income taxes act as automatic stabilizers?
What is the purpose of automatic stabilizers in the economy?
During a recession, how do automatic stabilizers affect government finances?
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About Us
About Fiveable
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Terms of Use
Privacy Policy
CCPA Privacy Policy
Resources
Cram Mode
AP Score Calculators
Study Guides
Practice Quizzes
Glossary
Cram Events
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Help Center
© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.