Which one of the following is NOT an automatic stabilizer?
A) the income tax system
B) the system of national defense procurement
C) the system of welfare payments
D) unemployment compensation programs

Question

Quizplus · Accepted Answer

An automatic stabilizer is a feature of a country's economic system that reduces the impact of economic shocks and recessions. It is a mechanism that operates without requiring explicit government action. In this context, the system of national defense procurement is not related to the automatic stabilizers. The other options, income tax system, welfare payments, and unemployment compensation programs are examples of automatic stabilizers that can help stabilize the economy during recessions.

Which One of the Following Is NOT an Automatic Stabilizer