All of the following are automatic stabilizers EXCEPT
A) the federal income tax system.
B) welfare payments.
C) discretionary tax cuts.
D) unemployment compensation.

Question

Quizplus · Accepted Answer

Automatic stabilizers are economic policies that automatically adjust to offset economic fluctuations without requiring explicit action (discretionary policy) by the government. Discretionary tax cuts, however, are not automatic stabilizers as they require explicit action by the government to be put in place. The other choices are automatic stabilizers as they adjust automatically to economic fluctuations.

All of the Following Are Automatic Stabilizers EXCEPT