Title: QUIZ: Automatic Stabilizers -- GDP and Pizza Video Explainers
Course: FRE Resources > Section: Automatic Stabilizers -- GDP and Pizza Video Explainers

Q: Automatic stabilizers _____ the business cycle but cannot completely ______ the highs and lows.
- Intensify, sharpen
- Smooth, eliminate
- Eliminate, flatten
- Complete, smooth
A: Smooth, eliminate

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: 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