Automatic stabilizers smooth fluctuations in the economy because they produce changes in the government's budget that
A)reinforce changes in GDP.
B)help offset changes in GDP.
C)produce a cyclically adjusted budget.
D)produce a standardized budget.

Question

Quizplus · Accepted Answer

Automatic stabilizers help offset changes in GDP by automatically increasing government spending or decreasing taxes when GDP falls, and vice versa.

Automatic Stabilizers Smooth Fluctuations in the Economy Because They Produce