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which of the following are examples of automatic stabilizers? a. The increase in government spending that occurs as the result of new spending bills passed by Congressb. The reduction in the money supply that occurs as banks become less willing to make loans during a recessionc. The rise in tax revenue that occurs as a result of growth in real GDPd. The reduction in real wages that occurs as the economy goes into a recession

Respuesta :

The rise in tax revenue that occurs as a result of growth in real GDP is an examples of automatic stabilizers. Automatic stabilizers are parts of government budgets that, when the economy worsens, increase spending or decrease taxes without the consent of lawmakers.

What are the three economics automatic stabilizers?

Automatic stabilizers are fiscal or tax measures that support the economy more during downturns or recessions and less during booms. There is no need for additional action from Congress or the President because they do it in a predetermined way. The social safety net's programs serve as a prime example of automatic stabilizers.

The most well-known automatic stabilizers include taxes, Medicaid, SNAP, and unemployment insurance (UI). People's reactions to recessions are tempered by automatic stabilizers, which also help them survive if they lose their jobs or their businesses suffer.

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