Which of the Following Is an Example of an Automatic

question 35

Multiple Choice

Which of the following is an example of an automatic stabilizer?

• A)Decrease in tax rates by Congress in times of unemployment
• B)Decrease in tax rates by Congress in times of inflation
• C)Increase in government defense spending during war
• D)Increase in unemployment compensation during recession
• E)Decrease in welfare programs during inflation

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Definitions:

Non-Hispanic Whites

A demographic group in the United States defined by the Census Bureau as people of European descent who do not identify as Hispanic or Latino.

Hispanics

A term often used in the United States to describe people, cultures, or countries related to Spain, Spanish language, or Latin America.

Social Security Payments

Money that is paid to individuals by the government as part of a social welfare program, typically in retirement or for disability.

Poverty

A condition where an individual or community lacks financial resources and essentials for a minimum standard of living.