Question

An automatic stabilizer is a provision in the budget that causes:

A. Volatility in government spending.
B. Fluctuations in tax rates.
C. Changes in fiscal policy without the need for new legislation.
D. Unpredictable outcomes in the economy.

Answer 1

An automatic stabilizer is a provision in the budget that causes changes in fiscal policy without the need for new legislation.

Step-by-step explanation:

An automatic stabilizer is a provision in the budget that causes changes in fiscal policy without the need for new legislation. Automatic stabilizers are taxing and spending mechanisms that shift in response to economic events

.