Which of the following acts as an automatic stabilizer?

Question

An automatic stabilizer buffers the economy against changes in income without requiring policymakers to take explicit actions

A. All of the other selections

B. Fixed taxes

C. Unemployment compensation

D. Government spending (G)

Answer 1

C.)  Unemployment compensation.

This is an automatic stabilizer because if people start losing jobs (as in a recession) they will automatically be eligible for unemployment compensation, thereby "stabilizing" the economy without direct government intervention.

Answer 2

B. Fixed Taxes would Realy Help.

But what we REALY need, is NEW JOBS, NEW BUSINESSES, and such.

E. JOB GROWTH!!

Government Spending is Killing our Nation.

We need to Plug our Leaks in our Economic Situation. And we need to do the Same Thing with our Boarders.

Seal them, and Cork 'em Good!! :)