An Example of an Automatic Stabilizer Is

question 130

Multiple Choice

An example of an automatic stabilizer is

• A) the food stamp program.
• B) changing the tax laws to increase the marginal tax rates.
• C) the indexation of social security benefits to the consumer price index.
• D) the interest the government pays on loans.

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Definitions:

ADR

Alternative Dispute Resolution, a range of processes such as mediation and arbitration used to resolve disputes outside of court.

Neutral Third Party

An impartial individual or entity involved in a negotiation or conflict resolution who does not favor any side involved in the dispute.

Negotiation

A dialogue between parties intended to reach a beneficial outcome over a conflict, disagreement, or deal.

Arbitrations

A method of resolving disputes outside the courts, where the parties involved present their case to a neutral third party for a decision.