Automatic stabilizers are defined as
A)actions taken by the President without Congressional consent to stabilize the economy.
B)actions taken by an act of Congress to stabilize the economy.
C)policy that stabilizes without the need for action by the government.
D)discretionary policy taken to stabilize the economy.
E)policy that has no multiplier effects.

Question

Quizplus · Accepted Answer

Automatic stabilizers refer to policies that stabilize the economy without the need for government action. These policies automatically adjust to changes in economic conditions, such as unemployment insurance and progressive taxation. They work to stabilize the economy during an economic downturn and stimulate the economy during an expansion without requiring additional legislation or discretionary policy actions.

Automatic Stabilizers Are Defined as