• Card 101 / 145: Automatic stabilizers are
    A) actions that are automatically taken by the society to stabilize the economy.
    B) fiscal policy changes that offset economic conditions by stimulating or suppressing aggregate demand without the need for explicit action by policymakers.
    C) actions that automatically stabilize the economy without any changes in consumption, investment, and government spending.
    D) changes in monetary policy that stimulate aggregate demand without explicit action by policymakers.

    Answer:
    B) fiscal policy changes that offset economic conditions by stimulating or suppressing aggregate demand without the need for explicit action by policymakers.

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Macroeconomics MCQ

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