The progressive income tax and transfer payments are the two main

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The progressive income tax and transfer payments are both considered automatic stabilizers, which are tools used to stabilize the economy without direct government intervention. The progressive income tax helps to stabilize the economy by reducing the disposable income of high-income households during economic expansions and increasing their disposable income during economic contractions. Transfer payments, such as unemployment benefits and welfare, also help to stabilize the economy by providing a safety net for individuals who have lost their jobs or are experiencing financial hardship.

The Progressive Income Tax and Transfer Payments Are the Two