Automatic stabilizers include Select one A Discretionary tax

Automatic stabilizers include

Select one:

A. Discretionary tax cuts.

B. Unemployment benefits.

C. Deregulation.

D. Open market operations.

Solution

Answer - unemployment benefits

Reason - automatic stabilizer are the policy designed in such a way that it balances the economic fluctuations like unstable growth, recession, expansion etc without government efforts.

Automatic stabilizers including unemployment benefits. In periods of economic recession or unstable economy the government\'s expense on unemployment compensation automatically increases as more people lose their jobs, this increase in government spending prevents the economy from a more severe slowdown compared to what would occur if no unemployment compensation existed.

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