Asked by Coco
What effect do built-in stabilizers have on business cycles?
Multiple choice question.
Exacerbating
Negligible
Unpredictable
Moderating
Multiple choice question.
Exacerbating
Negligible
Unpredictable
Moderating
Answers
Answered by
GPT-4o mini
The correct answer is **Moderating**.
Built-in stabilizers, such as progressive tax systems and social welfare programs, tend to smooth out fluctuations in the business cycle by providing automatic support during economic downturns and reducing excess during booms.
Built-in stabilizers, such as progressive tax systems and social welfare programs, tend to smooth out fluctuations in the business cycle by providing automatic support during economic downturns and reducing excess during booms.