Economist Mark Thoma has written, "One of the difficulties in using fiscal policy to combat recessions is getting Congress to agree on what measures to implement. ... Automatic stabilizers bypass this difficulty by doing exactly what their name implies." Source: Mark Thoma, "The Importance of Automatic Stabilizers to the Economy," cbsnews, January 25, 2010. Automatic stabilizers are A. government spending and taxes that automatically increase or decrease along with the business cycle. B. changes in the money supply that occur automatically when money demand changes. C. changes in business taxes that occur when the economy slows down. D. budgetary cuts that occur automatically at the end of the fiscal year if there is a deficit.

The correct option is A,government spending and taxes that automatically increase or decrease along with the business cycle.

Explanation:

From a U.S perspective, automatic stabilizers are measures built into the country budgets that adjust the taxes to government's coffers and government expenditure when the economy goes into recess.

These measures are not usually approved by the Congress.

If one takes a careful look at the question, one would notice that the question talks about fiscal policy measures, which are government spending and taxes,invariably, option B is wrong because money supply belongs to monetary policy.

Option C is also wrong because taxes is not the only fiscal policy available.

Option D is wrong budget is a fiscal policy tool not a measure.

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two years ago, when picking flowers in the mountains back of yosemite valley, i found a book. it was blotted and storm-beaten; all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however; many of the inner pages were well preserved. and although all were more or less stained and torn, whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today; its granite pages have been torn and blurred by the same storms that wasted the castaway book.

two years ago, when picking flowers in the mountains back of yosemite valley; i found a book. it was blotted and storm-beaten, all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however, many of the inner pages were well preserved. and although all were more or less stained and torn; whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today, its granite pages have been torn and blurred by the same storms that wasted the castaway book.