________ is an example of an automatic stabilizer.
A) The fiscal multiplier
B) The spending multiplier
C) The Keynesian multiplier
D) Unemployment compensation
E) The American Recovery and Reinvestment Act of 2009

Question

Quizplus · Accepted Answer

Unemployment compensation is an example of an automatic stabilizer because it automatically increases during times of economic downturns, providing an income safety net to those who have lost their jobs, which helps boost overall consumer spending and economic activity. Therefore, it helps to stabilize the overall economy without the need for direct government intervention.

________ Is an Example of an Automatic Stabilizer