Question

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.

Answer 1

Answer:

stimulation ; stabilization

Explanation:

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

Answer 2

Answer:

stimulation ; stabilization

Explanation:

edg