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:

Clarity

The quality of being clear, understandable, and transparent in expression, thought, or presentation.

Tuberculosis

An infectious disease caused by the tubercle bacillus; pulmonary tuberculosis is a specific inflammatory disease of the lungs that destroys lung tissue.

Gram-positive

Referring to bacteria that retain the crystal violet dye in the Gram stain test, indicating a thick outer cell wall.

Gram-variable

Pertaining to bacteria that do not consistently stain either positive or negative in the Gram stain test, showing variability in cell wall structure.