Automatic stabilizers

automatic stabilizers
expenditures or receipts of the federal government that have stabilizing economic effects but increase and decrease automatically and without action by Congress or the president.

Automatic Stabilizers
Elements in the economy which mitigate the extremes of the business cycle by running counter to it. Example government payouts for unemployment insurance in recessionary periods.

AUTOMATIC STABILIZERS: A feature of the federal government's budget that tends to reduce the ups and downs of the business cycle without the need for any special legislative action, that is stabilization policies.

automatic stabilizers automatic tax and spending changes that occur over the course of the business cycle that tend to stabilize the fluctuations in real GDP. (29)
average fixed cost (AFC) fixed cost divided by the quantity produced. (8) ...

Automatic stabilizers-programs that automatically expand fiscal policy during recessions and contract it during booms-are one form of countercyclical fiscal policy.

Example of Automatic stabilizers
High Growth - In a period of high economic growth, automatic stabilizers will help to reduce the growth rate.

automatic stabilizers Built-in changes in government spending and taxation which usually serve the purpose of cooling down the economy. automatic withdrawal A mutual fund program that fixes payments to shareholders each month or each...

[FRB][FRBC] automatic stabilizers Measures built into the governments budget that cause its spending to increase and its tax revenues to decrease when the economy goes into slumps, ...

See also: Fiscal policy, Business cycle, Perfect competition, Tip, Cycles