Maude is complaining about how much she pays in taxes now that the economy is finally doing really well. Even though she's in the same tax bracket as she was last year, she's paying $500 more in taxes this year, just because she earned more overtime pay this year. Maude's increased tax payment to the government is an example of:

Question

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Maude's increased tax payment is an example of automatic stabilizers, which are built-in features of the tax system that help to stabilize the economy during economic fluctuations without the need for discretionary government action. As Maude earned more overtime pay, her tax liability increased due to progressive taxation, and this increased revenue helps to reduce the increase in aggregate demand caused by her increased income, thus helping to stabilize the economy.

Maude Is Complaining About How Much She Pays in Taxes