Which of the following is not an automatic stabilizer?
A)Personal income tax.
B) E.I premiums.
C)Public debt charges.
D)Transfers to persons.
E)I premiums.

Question

Quizplus · Accepted Answer

Automatic stabilizers refer to government policies or programs that automatically respond to changes in economic conditions, without the need for new legislation or administrative action. Personal income tax, transfers to persons, and EI premiums are all examples of automatic stabilizers as they automatically increase during a recession and decrease during an expansion. Public debt charges, on the other hand, do not change in response to economic conditions and are therefore not an automatic stabilizer.

Which of the Following Is Not an Automatic Stabilizer