Robert lost his job during the last recession, and his annual income fell by 15 percent. As a result of the action of automatic stabilizers, his disposable income is likely to have fallen by less than 15 percent.

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Quizplus · Accepted Answer

Automatic stabilizers are government policies, such as unemployment insurance and progressive taxation, that help stabilize the economy during economic downturns. These policies can help reduce the impact of a recession on individuals' disposable income, which is their income after taxes and other deductions. Therefore, it is likely that Robert's disposable income fell by less than 15 percent due to the operation of automatic stabilizers.

Robert Lost His Job During the Last Recession, and His