Give an Example of an Automatic Stabilizer

question 78

Essay

Give an example of an automatic stabilizer. Explain how automatic stabilizers operate within the economy during a recession and during an expansion.

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Definitions:

Secured Transaction

A financial agreement in which the borrower provides the lender a security interest in certain assets as collateral for a loan.

U.S. Citizen

An individual who has acquired citizenship of the United States of America through birth or naturalization.

Great Britain

the island comprising England, Scotland, and Wales, and is often colloquially used to refer to the United Kingdom.

Domesticated

Refers to animals that have been tamed and bred in a human environment for work, companionship, or food; can also refer to plants adapted for human use.