Which of the following might be considered an automatic fiscal stabilizer?
A) government spending for the war effort
B) 401(k) retirement program
C) unemployment compensation
D) government budgeting for education

Question

Quizplus · Accepted Answer

Unemployment compensation is considered an automatic fiscal stabilizer because in times of economic downturns, more people become unemployed and therefore eligible for unemployment benefits, which helps to stimulate consumer spending and stabilize the economy.

Which of the Following Might Be Considered an Automatic Fiscal