An institutional feature of an economy that dampens its macroeconomic fluctuations, e.g., an income tax, which acts like a tax increase in a boom and a tax cut in a recession.

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. The [..]

Government spending programs which respond to changes in the level of national income in such a way as to offset those changes. For example, unemployment insurance benefits typically rise when the eco [..]