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

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Automatic stabilizers are government policies and programs that automatically adjust to economic conditions in order to stabilize the economy. Examples include unemployment insurance and progressive income taxes. These policies and programs help soften the impact of economic downturns, which means that Robert's disposable income would likely have fallen by less than 15 percent due to the effects of automatic stabilizers.

Robert Lost His Job During the Last Recession and His