Title: QUIZ: Automatic Stabilizers -- GDP Video Explainers
Course: Recommended Resources for AP Macro from FRE > Section: Unit 3: National Income and Price Determination

Q: Which of the following is a standing policy that activates automatically without intervention, usually during a recession?
- Fiscal policy
- Monetary policy
- Increase in taxes
- Automatic stabilizers
A: Automatic stabilizers

Q: Which is an example of an automatic stabilizer?
- Unemployment insurance
- Tax cut
- Increase in interest rates
- Decrease in interest rates
A: Unemployment insurance

Q: Automatic stabilizers _____ the business cycle but cannot completely ______ the highs and lows.
- intensify, sharpen
- smooth, eliminate
- eliminate, flatten
- complete, smooth
A: smooth, eliminate