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Basic Question 9 of 11
Which of the following is an example of an automatic stabilizer?
II. A decrease in social security benefits during a recession
III. An increase in welfare benefits during an expansion
IV. A decrease in unemployment benefits paid out during an expansion
V. An increase in taxes during a recession
I. An increase in defense spending during an expansion
II. A decrease in social security benefits during a recession
III. An increase in welfare benefits during an expansion
IV. A decrease in unemployment benefits paid out during an expansion
V. An increase in taxes during a recession
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Craig Baugh
Learning Outcome Statements
explain the implementation of fiscal policy and difficulties of implementation as well as whether a fiscal policy is expansionary or contractionary
CFA® 2025 Level I Curriculum, Volume 1, Module 3.