Which of the following would not be considered an automatic stabilizer?
A) rising corporate income tax revenues due to an expanding economy
B) increasing welfare payments due to more people becoming unemployed during a recession
C) legislation increasing funding for job retraining passed during a recession
D) decreasing employment insurance payments due to increased employment during an expansion

Question

Quizplus · Accepted Answer

Automatic stabilizers are government policies or programs that automatically adjust to stabilize the economy, without the need for additional government action. Choices A, B, and D are all examples of automatic stabilizers. However, legislation increasing funding for job retraining is not an automatic stabilizer, as it requires additional government action to be implemented.

Which of the Following Would Not Be Considered an Automatic