Which of the following is not an automatic fiscal stabiliser?

Question

Quizplus · Accepted Answer

Automatic fiscal stabilisers are economic policies and programs designed to offset fluctuations in a nation's economic activity without intervention by the government or policymakers. Income support and unemployment benefits automatically increase during economic downturns, providing individuals with additional income and thereby stabilizing the economy. VAT (Value-Added Tax) is considered neutral in this context, adjusting naturally with consumption levels. However, government expenditure on road-building programs is not automatic; it requires active decision-making and is thus not considered an automatic fiscal stabiliser.

Which of the Following Is Not an Automatic Fiscal Stabiliser