05 Jul Are the real-world data consistent with the perspective of the automatic stabilizers during the recessions since the 1970s?
Take a look at the graphs of real GDP and federal debt in the following links: Real Gross Domestic Product (GDPC1) | FRED | St. Louis Fed (stlouisfed.org) (Links to an external site.) During a recession, real GDP decreases. On the graph, the grey column is the...