Which of the following is not an automatic stabilizer?
A)a progressive income-tax system
B)unemployment compensation
C)new legislation to increase tax rates
D)unemployment insurance
E)welfare programs

Question

Quizplus · Accepted Answer

Automatic stabilizers refer to government programs and policies that automatically stabilize the economy during a recession without the need for legislative action. Options A, B, D, and E are all examples of automatic stabilizers. Option C, new legislation to increase tax rates, does not qualify as an automatic stabilizer as it requires legislative action to be implemented.

Which of the Following Is Not an Automatic Stabilizer