An Example of an Automatic Stabilizer Is

question 89

Multiple Choice

An example of an automatic stabilizer is:

• A) increased unemployment rates cause the government to pay out more in unemployment insurance.
• B) increased tax revenues due to nominalincome going up during a boom.
• C) reduced unemployment rates during a boom means more people working, and the government pays less out in food assistance.
• D) All of these are examples of automatic stabilizers.