An Automatic Stabilizer Is

question 83

Multiple Choice

An automatic stabilizer is:

• A) A government spending or tax change that automatically responds counter to the business cycle.
• B) A tax cut approved by Congress prior to an election year.
• C) A monetary supply or interest rate change that automatically responds counter to the business cycle.
• D) Supply-side policy designed by Congress to shift aggregate supply to the right.

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Definitions:

Due Date

The specific day by which a task is to be completed or a payment is to be made.