How are automatic stabilizers used to combat inflation

        In today's economy, there are devices present called automatic stabilizers. Automatic stabilizers, are mechanisms which aid in the correction of an economic problem without the interference of anyone or anything. They are perhaps most useful to combat demand - pull inflation. Demand - pull inflation, is when prices rise because the economy cannot produce enough goods to satiate the economy. An automatic stabilizer, that is beneficial to combat such a problem, is a progressive tax. …

…government to be able to put less work in the US fiscal policy. Also, it saves time in fixing an economic problem, because discretionary fiscal policy (policy in which the government must put into action themselves) would take the time of recognizing the problem, passing a bill to combat the problem, and then waiting for it to come into effect. With automatic stabilizers, the only time wasted is waiting for the effect to become noticeable.