Suppose your state passes a law that adjusts spending,based on a preset formula,to offset cyclical changes in the economy.This is an example of:

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Automatic stabilization refers to government policies, like automatic adjustments in taxes and spending, that automatically offset fluctuations in economic activity. In this scenario, the law adjusts spending based on a formula, which is an example of automatic stabilization. The other options, static scoring (A) and dynamic scoring (B), refer to methods of evaluating the economic impact of policies, and discretionary stabilization (D) refers to deliberate government action taken to stabilize the economy.

Suppose Your State Passes a Law That Adjusts Spending,based on a Preset