AA special infrastructure spending bill passed during a recession
BA tax cut enacted by Congress to stimulate growth
CUnemployment insurance benefit payments that increase automatically during downturns
DA Federal Reserve interest rate cut
✓ Correct answer: C. Unemployment insurance benefit payments that increase automatically during downturnsAutomatic stabilizers work without new legislative action. Unemployment insurance payments rise automatically in recessions (injecting income), and tax revenues fall automatically, both cushioning the economic decline.
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Theory