"The balanced budget may get affected when automatic stabilizers kick in to tackle boom and recession". Explain the statement.
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If the federal government is required to maintain a balanced budget, what would be the affect on automatic stabilizers in a recession.
To counteract the effect of automatic stabilizers during a recession and to keep the budget balanced, the federal government must _________ government spending, or ________ taxes, and which will ___________ aggregate demand.
During a recession, the increase in budget deficit due to automatic stabilizers results in