Governments engage in _______ to increase aggregate demand during a recession and to invigorate the economy.
  1. Growth stabilizers
  2. Automatic stabilizers
  3. Aggregate stabilizers
  4. Supply stabilizers
Explanation
Answer - B - Governments engage in automatic stabilizers to increase aggregate demand during a recession and to invigorate the economy.

Key Takeaway: Automatic stabilizers such as the taxation system, as well as other forms of government investment increase aggregate demand during a recession. The goal behind using automatic stabilizers is to stimulate the economy without taking deliberate action.
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