Automatic Stabilizers in Economics: Definition & Examples


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question 1 of 3

An automatic stabilizer is BEST defined as _____.

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1. Which of the following is NOT an example of an automatic stabilizer?

2. How does a progressive tax code affect consumers?

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About This Quiz & Worksheet

This quiz and corresponding worksheet will help you gauge your understanding of the automatic stabilizers within macroeconomics. Topics you'll need to know to pass the quiz include examples of automatic stabilizers.

Quiz & Worksheet Goals

Use these assessment tools to assess your knowledge of:

  • What an automatic stabilizer is
  • Examples of automatic stabilizers
  • The meaning of a progressive tax code
  • The benefits of automatic stabilizers to the economy
  • How automatic stabilizers tend to affect the government's budget during recessions

Skills Practiced

This worksheet and quiz will let you practice the following skills:

  • Defining key concepts - ensure that you can accurately define main phrases, such as automatic stabilizer and progressive tax code
  • Reading comprehension - ensure that you draw the most important information from the related lesson on automatic stabilizers in macroeconomics
  • Interpreting information - verify that you can read information regarding the economic benefits of automatic stabilizers and interpret it correctly
  • Knowledge application - use your knowledge to answer questions about examples of these stabilizers

Additional Learning

To learn more about the importance of automatic stabilizers in the economy, review the corresponding lesson on Automatic Stabilizers in Macroeconomics. This lesson covers the following objectives:

  • Explore examples of automatic stabilizers
  • Define automatic stabilizer
  • Review progressive tax codes and government programs
  • Understand the benefits of automatic stabilizers