What does automatic fiscal stabilizers mean?

automatic fiscal stabilizers meaning in Law Dictionary

n tool that will help hold economic modifications much more steady. The us government doesn't involved. AKA automatic stabilizers or builtin stabilizers.

automatic fiscal stabilizers meaning in Business Dictionary

guidelines or establishments (included in an economic system) that automatically have a tendency to dampen economic period variations in earnings, work, etc., without direct federal government input. For instance, in boom times, modern income tax automatically reduces cash supply as incomes and spendings rise. Likewise, in recessionary times, repayment of unemployment benefits injects more income when you look at the system and encourages demand. Also called automatic stabilizers or integral stabilizers.