Which statement is true about automatic stabilizers?

A) They have eliminated the business cycle.
B) They have helped smooth out the business cycle.
C) They have been completely ineffective.
D) None of the statements are true of automatic stabilizers.

Automatic Stabilizers

Economic policies and programs designed to offset fluctuations in a nation's economic activity without intervention by the government or policymakers.

Business Cycle

The fluctuating levels of economic activity over time, including periods of expansion, peak, recession, trough, and recovery.