What is an automatic stabilizer?
A) It refers to a discretionary policy that is triggered when actual output is not equal to potential
output to improve the economy's performance.
B) It refers to a stabilization program that keeps inflation in check automatically.
C) It refers to any government program that tends to reduce fluctuations in GDP automatically.
D) It refers to a government program that is automatically triggered when the economy enters a recession.
Ans: C) It refers to any government program that tends to reduce fluctuations in GDP automatically.
You might also like to view...
Economics is a study of how
a. people interact with each other in social situations b. too many goods and services can make people unhappy c. to make resources infinite d. we allocate our resources to satisfy our wants e. to satisfy all of our wants as a society
Which of the following statements best describes the Bank of Canada? It is
What will be an ideal response?