An Example of Automatic Stabilizers Is

question 256

Multiple Choice

An example of automatic stabilizers is

• A) government spending rising during an expansion.
• B) government spending falling during a recession.
• C) taxes rising in an expansion.
• D) deficit targeting.

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Definitions:

Market Price

The current price at which an asset or service can be bought or sold in a given market.

Market System

A system where economic decisions, such as pricing and investment, are determined by supply and demand.

Regulatory Mechanism

A system or process designed to control or govern conduct, often within industries or sectors, through guidelines or rules.

Laissez-faire Capitalism

An economic system characterized by minimal government intervention and the free operation of market forces.