The 'automatic mechanism' can best be described as using fiscal or monetary policies to stabilize the economy when it is not at potential. how the economy returns to potential GDP without any policy...

Extracted text: The 'automatic mechanism' can best be described as using fiscal or monetary policies to stabilize the economy when it is not at potential. how the economy returns to potential GDP without any policy action. the result of monetary policy implemented by the Fed restoring full employment. how fiscal policy is used to return the economy to its potential.