In the Canadian economy,the progressive income tax and employment insurance are both

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The progressive income tax and employment insurance are both automatic stabilizers in the Canadian economy. The progressive income tax ensures that those with higher incomes pay a larger proportion of their income in taxes, which helps to redistribute income and reduce income inequality. During a recession, when incomes and tax revenues fall, the proportion of tax revenues collected from those with higher incomes automatically increases and helps to stabilize government revenue. Employment insurance provides income support to workers who lose their jobs and contributes to stabilizing consumption during a recession. When more people lose their jobs, more people are eligible for employment insurance benefits, which helps to stabilize their income and maintain consumption levels. Therefore, both the progressive income tax and employment insurance are automatic stabilizers in the Canadian economy.

In the Canadian Economy,the Progressive Income Tax and Employment Insurance