The decrease in government spending on food stamps to low income families during an expansion is an example of:________

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25-08-2022
Social Studies

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The decrease in government spending on food stamps to low income families during an expansion is an example of:________

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RajarshiG RajarshiG · Answer 1 · 2022-08-30T08:43:07-04:00

The decrease in government spending on food stamps to low income families during an expansion is an example of automatic stabilizers

Automatic stabilizers are components of government budgets that, without the approval of lawmakers, raise expenditure or lower taxes when the economy weakens.

Automatic stabilizers, which don't require any new laws or modifications to the tax system, can reduce tax obligations for households during a recession while also increasing cash and in-kind benefits

As an illustration, when a household's income drops, it often owes less in taxes, which lessens the impact. A household may also qualify for Medicaid, SNAP (Supplemental Nutrition Assistance Program), or unemployment insurance (UI) if its income declines.

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