Respuesta :
Yes, automatic stabilizers are more effective in influencing real GDP at normal times than at times of a recession.
What are Automatic stabilizers?
- Automatic stabilizers are aspects of tax and transfer systems that, without direct involvement from politicians, cool the economy when it overheats and stimulates the economy when it slumps.
- Automatic stabilizers compensate for changes in economic activity without the need for direct policy action.
- Automatic stabilizers help people weather recessions by keeping them afloat if they lose their employment or their businesses suffer.
- They also play an important macroeconomic function by raising aggregate demand when it lags, allowing downturns to be shorter and less severe than they would otherwise be.
As it is given in the description, automatic stabilizers help people weather recessions by keeping them afloat if they lose their employment or their businesses suffer.
Therefore, yes, automatic stabilizers are more effective in influencing real GDP at normal times than at times of a recession.
Know more about Automatic stabilizers here:
https://brainly.com/question/25558588
#SPJ4
