Which of the following is an automatic stabilizer in the U.S. economy? There may be more than

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Which of the following is an “automatic stabilizer” in the U.S. economy? There may be more than one:
a. Consumers usually spend some of their savings and eat food from the pantry during recessions.
b. Business owners usually purchase more capital equipment whenever profits fall.
c. Governments automatically transfer cash to the unemployed when the economy is weak.
d. When Americans have less demand for U.S. manufactured products, foreigners might pick up some of the slack, buying these unsold U.S.- made goods.
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Modern Principles of Economics

ISBN: 978-1429278393

3rd edition

Authors: Tyler Cowen, Alex Tabarrok

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