Answer:
B) Exemplified by a program such as unemployment compensation.
Explanation:
Automatic stabilizer is an example of fiscal policy that result automatically and tend to offset fluctuations in economic activity without direct intervention from the policymakers.
They are used to stabilize the economy.
Automatic stabilizer could be referred to as economy stabilizer
Examples are;
Tax reduction and spending more of government during recession
Increase of tax during booms
Extract money from the economy during booms
Unemployment compensation, unemployment insurance and welfare.
Automatic stabilizers are features of the tax and transfer systems that temper the economy when it overheats and stimulate the economy when it slumps, without direct intervention by policy makers.
