Automatic stabilizers _____
A) deliberately manipulate government purchases, transfer payments, and taxes to promote macroeconomic goals.
B) are revenue and spending programs in the federal budget that automatically adjust with the ups and downs of the economy.
C) are a method of emergency manipulation of government purchases, transfer payments, and taxes to promote macroeconomic goals.
D) are revenue and spending programs in the federal budget that never adjust with the ups and downs of the economy.
E) are monetary policy changes.

Question

Quizplus · Accepted Answer

Automatic stabilizers refer to revenue and spending programs in the federal budget that automatically adjust with the ups and downs of the economy. Examples include income tax and welfare programs like unemployment insurance. They help stabilize the economy by increasing spending during downturns and decreasing it during upswings, without the need for deliberate government manipulation.

Automatic Stabilizers _____