Which of the following is an automatic stabiliser?

Name: Which of the following is an automatic stabiliser?
Brand: Quizplus
Rating: 4.9 (50 reviews)

Question

Quizplus · Accepted Answer

VAT (Value-Added Tax) is considered an automatic stabilizer because it automatically adjusts with economic activity. During economic expansions, consumption increases, leading to higher VAT revenues without any legislative change. Conversely, during downturns, consumption and VAT revenues decrease, providing an automatic fiscal response to economic conditions.

Which of the Following Is an Automatic Stabiliser