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Nondiscretionary fiscal policy or built-in stabilizers automatically _____________ government spending (G) during inflations.

1 Answer

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Answer: Increases

Step-by-step explanation:

According to the given question, the non-discretionary fiscal policy automatically increases the government spending during the inflation as according to the requirement the economy can expand and can also shrink depends upon the demand.

It is also known as the automatic stabilizers as technically it increasing the budget without any specifying the new legislation at the recession time. The tax and the spending are the two important tools of the fiscal policy.

Therefore, Increase is the correct answer.

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