Which of the following is NOT an example of an automatic stabilizer?

Question

Quizplus · Accepted Answer

Automatic stabilizers are government programs or policies that automatically adjust to fluctuations in the economy without any additional actions needed from policymakers. Social Security payments, unemployment compensation, progressive personal income tax rates, and unemployment benefits are all examples of automatic stabilizers because they adjust automatically based on economic conditions. Tax hikes that enable a balanced budget, on the other hand, are not an example of an automatic stabilizer because they require policymakers to take action in order to adjust tax rates.

Which of the Following Is NOT an Example of an Automatic