Examples of automatic stabilizers include:
A) food stamps.
B) unemployment benefits.
C) income taxes.
D) food stamps,unemployment benefits,and income taxes.

Question

Quizplus · Accepted Answer

Automatic stabilizers refer to government programs built into the fiscal system that automatically respond to economic fluctuations. These stabilizers do not require any new legislation to be passed by the government as they operate automatically. Examples of automatic stabilizers include food stamps, unemployment benefits, and income taxes, as these programs can provide assistance during economic downturns and reduce government spending during times of economic expansion. Therefore, the best choice is D as it includes all three examples of automatic stabilizers listed above.

Examples of Automatic Stabilizers Include