Which of the following would not be considered an automatic stabilizer?
A)legislation increasing funding for job retraining passed during a recession
B)decreasing unemployment insurance payments due to decreased jobless during an expansion
C)rising income tax collections due to rising incomes during an expansion
D)declining social housing payments due to more persons finding jobs during an expansion
E)declining sales tax (HST or GST)revenue as the economy enters a recession

Question

Quizplus · Accepted Answer

Automatic stabilizers are government programs or policies that automatically counterbalance the fluctuations in economic activity, without the need for specific legislative action. Option A is not an automatic stabilizer since legislation would need to be passed to increase funding for job retraining during a recession, which is not automatically triggered by economic fluctuations. The other options listed are examples of automatic stabilizers.

Which of the Following Would Not Be Considered an Automatic