Which of the following components of government spending and revenue serves as an automatic stabilizer?
A) the wealth effect
B) the multiplier
C) unemployment insurance
D) military spending
E) property taxes

Question

Quizplus · Accepted Answer

Unemployment insurance serves as an automatic stabilizer as it provides temporary financial assistance to those who have lost their jobs, helping to maintain their spending and stimulating overall economic activity during a recession. This can help to offset declines in consumer spending during economic downturns.

Which of the Following Components of Government Spending and Revenue