Give an Example of an Automatic Stabilizer

question 183

Essay

Give an example of an automatic stabilizer.Explain how automatic stabilizers work in the case of recession.

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Definitions:

Internal Information Search

Consumers’ use of past experiences with items from the same brand or product class as sources of information.

Past Experience

An individual's accumulated knowledge or skills obtained from previous events, work, or education.

Brand

The name, term, symbol, design, or any combination of these that identifies and differentiates a firm’s products.

Safety and Security

Refers to measures, practices, and policies aimed at ensuring the protection of individuals, organizations, or nations from harm or danger.