What Is an Automatic Stabilizer

question 171

Multiple Choice

What is an automatic stabilizer?

• A) It refers to a discretionary policy that is triggered when actual output is not equal to potential output to improve the economy's performance.
• B) It refers to a stabilization program that keeps inflation in check automatically.
• C) It refers to any government program that tends to reduce fluctuations in GDP automatically.
• D) It refers to a government program that is automatically triggered when the economy enters a recession.

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Definitions:

Psychodynamic Perspective

An approach in psychology that emphasizes unconscious psychological processes and contends that childhood experiences are crucial in shaping adult personality.

Evolutionary Perspective

A theoretical approach in psychology that seeks to explain certain mental and psychological traits—such as memory, perception, or language—as adaptations, i.e., as the functional products of natural selection.

Neuroscience Perspective

An approach to understanding human behavior and mental processes through the study of the brain and nervous system.

Mental Life

The internal workings of the mind, including thoughts, feelings, memories, and perceptions that constitute an individual's conscious and unconscious experience.