AP®︎ Macroeconomics: Topic 3.9 Practice Test
Prepare for your quiz, test, or the AP exam with focused practice questions on Topic 3.9 of AP Macroeconomics – Automatic Stabilizers.
Questions List
Topic 3.9
Question 1 Easy
This question tests the following: POL-1.C.1
What are automatic stabilizers?
What You’re Being Tested On:
Explore the learning objectives taken directly from the College Board’s AP® Macroeconomics Curriculum. Ensure you’re prepared for the exact topics covered on the AP® exam, in-class tests, and quizzes, and gain confidence in your mastery of the material.
Topic 3.9: Automatic Stabilizers
Learning Objective: POL-1.C
a. Define automatic stabilizers. b. Explain how automatic stabilizers moderate business cycles.
Essential Knowledge: POL-1.C.1
Automatic stabilizers support the economy during recessions and help prevent the economy from being overheated during expansionary periods.
Essential Knowledge: POL-1.C.2
Tax revenues decrease automatically as GDP falls, preventing consumption and the economy from falling further.
Essential Knowledge: POL-1.C.3
Tax revenues increase automatically as GDP rises, slowing consumption and preventing the economy from overheating.
Essential Knowledge: POL-1.C.4
Government policies, institutions, or agencies may also have social service programs whose transfer payments act as automatic stabilizers.
