Revenue and spending programs in the federal budget that automatically adjust with the ups and downs of the economy are known as _____
A) discretionary fiscal policy.
B) automatic stabilizers.
C) expansionary fiscal policy.
D) contractionary fiscal policy.
E) monetary policy.

Question

Quizplus · Accepted Answer

Automatic stabilizers are revenue and spending programs in the federal budget that automatically adjust with the ups and downs of the economy. These programs help to stabilize the economy without the need for explicit action from policymakers. Options A, C, D, and E refer to other types of fiscal and monetary policies.

Revenue and Spending Programs in the Federal Budget That Automatically