According to _____, net taxes _____ during an economic expansion.
A)automatic stabilisers; rise
B)automatic destabilisers; rise
C)automatic stabilisers; fall
D)automatic destabilisers; fall

Question

Quizplus · Accepted Answer

Automatic stabilizers are policy tools used to stabilize an economy. During an economic expansion, the government's tax revenue increases because people's incomes are rising. This increase in net taxes acts as a stabilizing force, helping to slow down the economy and prevent overheating. Therefore, net taxes rise during an economic expansion.

According to _____, Net Taxes _____ During an Economic Expansion

According to _, Net Taxes _ During an Economic Expansion