The term "automatic stabilizers" describes:

Question

A. Programs that are designed to stabilize the real rate of interest in the economy.
B. Programs that require action by the US President and Congress before they become active.
C. Programs that tend to reduce the size of the national debt during a period of recession.
D. Programs that respond automatically and counter-cyclically to changes in aggregate economic activity.

Answer 1

D. Programs that respond automatically and counter-cyclically to changes in aggregate economic activity.