The most important automatic stabilizer is the tax system.

Name: The most important automatic stabilizer is the tax system.
Brand: Quizplus
Rating: 4.7 (60 reviews)

Question

Quizplus · Accepted Answer

The tax system is considered the most important automatic stabilizer because it adjusts the amount of tax collected based on an individual's income level, thereby helping to moderate the swings in the economy by automatically increasing government revenue during boom periods and decreasing it during recessions, without the need for new legislation.

The Most Important Automatic Stabilizer Is the Tax System