Automatic stabilizers are designed to
A) promote global trade.
B) simplify the tax system.
C) moderate changes in disposable income.
D) stabilize the bi-partisan budget process.

Question

Quizplus · Accepted Answer

Automatic stabilizers are government programs or policies that help reduce the impact of economic fluctuations on individuals and businesses. One of their primary functions is to moderate changes in disposable income, by automatically increasing spending during economic downturns (e.g. unemployment benefits, food stamps) and reducing spending during economic booms (e.g. taxes on income).

Automatic Stabilizers Are Designed to