Johnny has been working a lot of overtime during the most current economic boom. As a result, his income is high enough for him to move from the 10 percent tax bracket to the 15 percent tax bracket. So, Johnny pays a higher percentage of a higher income to the government this year. The increased amount paid to the government is an example of:

Question

Quizplus · Accepted Answer

Automatic stabilizers slow the economy by increasing government spending or reducing taxes during economic downturns. In this case, Johnny's increased income tax payments are an example of automatic stabilizers slowing the economy.

Johnny Has Been Working a Lot of Overtime During the Most