The correct answer is automatic or built-in stabilizers. These refer to mechanisms in the economy that naturally adjust tax revenues and government spending in response to economic changes, helping to moderate fluctuations in economic activity.
Evaluating the status of Blank______ requires adjusting deficits and surpluses to account for automatic changes in tax revenues.
Multiple choice question.
fiscal policy
monetary policy
tax progressivity
automatic or built-in stabilizers
1 answer