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:

Kinship System

A classification structure that defines and organizes individuals within a culture based on their familial relationships and descent.

Matrilineal Descent

A system of lineage traced through the female line, where inheritance and descent are passed down from mothers to their offspring.

White Superiority

A racist ideology that posits white people as superior to people of other racial backgrounds, with no basis in scientific fact and often used to justify discriminatory practices.

Totemism

The belief that people are related to particular animals, plants, or natural objects by virtue of descent from common ancestral spirits.