Automatic stabilizers smooth fluctuations in the economy because they produce changes in the government's budget that

Question

Multiple Choice
reinforce changes in GDP.
help offset changes in GDP.
produce a cyclically-adjusted budget.
produce a standardized budget.

Answer 1

Automatic stabilizers smooth fluctuations in the economy because they produce changes in the government's budget that help offset changes in GDP.

Therefore, the correct answer is: help offset changes in GDP.