Progressive income taxes, social security benefits, and unemployment compensation constitute automatic stabilizers.
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Q128: Under a progressive tax structure, the marginal
Q129: If Bill earns $100,000 a year and
Q130: A sales tax is a proportional tax
Q131: Most industrialized countries now have a value-added
Q132: Some countries rely strictly on a VAT
Q134: Suppose that the average tax rate is
Q135: Automatic stabilizers act to moderate business cycles
Q136: Automatic stabilizers cause a smaller budget deficit
Q137: Public-sector spending plays a much bigger role
Q138: Foreign holdings of U.S. government securities act
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