31.1k views
1 vote
Automatic stabilizers create ________ during recessions from increased government spending on welfare and unemployment insurance, and reduced tax revenues, and create _________ during peak growth periods of the economy from reduced government welfare spending and increased tax revenues.

1 Answer

3 votes

Answer:

stimulation ; stabilization

Step-by-step explanation:

Automatic stabilizers act to stimulate the economy during recessions and stabilize the economy when it becomes overheated

User Radha Gogia
by
7.9k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories