Which of the Following Is an Example of an Automatic

question 155

Multiple Choice

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

• A)the Unemployment Compensation Program
• B)the American Recovery and Reinvestment Act
• C)a temporary elimination of the federal excise tax on gasoline
• D)a federal income tax rebate
• E)none of the above is an automatic stabilizer

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Definitions:

Formal Democracy

Involves regular, competitive elections.

Elected Democracy

A form of democracy in which representatives are chosen through the electoral process by the populace to act on their behalf in governing and making policy decisions.

Postmaterialism

Is a theory that claims that growing equality and prosperity in the rich industrialized countries have resulted in a shift from class-based to value-based politics.

Economic Issues

Problems or challenges related to the production, distribution, and consumption of goods and services in a society.