Statement I: In the 1930s,the federal government built a few automatic stabilizers into the economy.
Statement II: Automatic stabilizers protect the economy from the extremes of the business cycle.

Question

Quizplus · Accepted Answer

Statement I is true as the federal government did introduce some automatic stabilizers in the 1930s, such as unemployment insurance and progressive income taxes. Statement II is also true, as automatic stabilizers help to smooth out economic fluctuations, cushioning the economy from the extremes of the business cycle.

Statement I: in the 1930s,the Federal Government Built a Few