question 6\nwhich of the following is an example of an automatic stabilizer?\na) an interest rate cut by the…

question 6\nwhich of the following is an example of an automatic stabilizer?\na) an interest rate cut by the bank of canada\nb) a public works project undertaken by the federal government\nc) unemployment insurance\nd) inflation\ne) economic growth

question 6\nwhich of the following is an example of an automatic stabilizer?\na) an interest rate cut by the bank of canada\nb) a public works project undertaken by the federal government\nc) unemployment insurance\nd) inflation\ne) economic growth

Answer

Brief Explanations:

Automatic stabilizers are economic policies and programs that tend to offset fluctuations in economic activity without direct intervention by policymakers. Unemployment insurance is an automatic stabilizer as it provides income support during economic downturns when unemployment rises, increasing consumer spending and helping to stabilize the economy. Interest rate cuts and public - works projects require active policy decisions. Inflation and economic growth are economic phenomena, not automatic stabilizers.

Answer:

C. Unemployment insurance