Automatic stabilizers

Question

Part 2
A.
require new legislation to be implemented.
B.
include the progressive income tax but not unemployment compensation.
C.
cause changes in the economy without the action of Congress and the President.
D.
are a component of discretionary fiscal policy.

Answer 1

C. cause changes in the economy without the action of Congress and the President.

Answer 2

The purpose of automatic stabilizers is to
Part 4
A.
lessen the impact of unemployment in a recession and slowdown inflation during an expansion.
B.
act as a safety measure preventing the government from using fiscal policy.
C.
stabilize tax revenue and government expenditures.
D.
make sure people have a living wage.

Answer 3

A. lessen the impact of unemployment in a recession and slowdown inflation during an expansion.