Which of the following is NOT an automatic stabilizer?

Question

Quizplus · Accepted Answer

Automatic stabilizers are policies or features of the economy that help mitigate fluctuations in economic activity without any additional actions from policymakers. Options A, C, and D are all examples of automatic stabilizers as they help to stabilize the economy during times of recession or inflation by increasing or decreasing the purchasing power of consumers or businesses. However, defense spending is not an automatic stabilizer as it requires the government to take an active role in increasing or decreasing spending on defense.

Which of the Following Is NOT an Automatic Stabilizer