An automatic stabilizer that works when the economy contracts is a:

Name: An automatic stabilizer that works when the economy contracts is a:
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When the economy contracts, there is usually an increase in unemployment. As a result, more people tend to receive employment insurance benefits, which are government transfers. This increase in government transfers acts as an automatic stabilizer to boost consumer spending and stimulate the economy. Therefore, the best choice is D.

An Automatic Stabilizer That Works When the Economy Contracts Is