Income taxes in the United States are automatic stabilizers because
A) tax rates can be adjusted by the Congress to counteract economic fluctuations.
B) the President can increase tax rates whenever the President deems such a policy appropriate.
C) tax revenues decrease when income increases, intensifying the increase in aggregate demand.
D) tax revenues increase when income increases, thus offsetting some of the increase in aggregate demand.
Correct Answer:
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Q180: Q181: Automatic stabilizers Q182: Because of automatic stabilizers, when real GDP Q183: Which of the following is considered an Q184: The term "induced taxes" refers to Q186: An automatic stabilizer Q187: An example of an automatic fiscal policy Q188: Income taxes and transfer payments Q189: One characteristic of automatic stabilizers is that Q190: Automatic stabilizers are at work if, as
A) are triggered by the business
A) sales
A) requires action by the
A) prevent the
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