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What Is an Automatic Stabilizer

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What is an automatic stabilizer?


A) It refers to a discretionary policy that is triggered when actual output is not equal to potential output to improve the economy's performance.
B) It refers to a stabilization program that keeps inflation in check automatically.
C) It refers to any government program that tends to reduce fluctuations in GDP automatically.
D) It refers to a government program that is automatically triggered when the economy enters a recession.

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