Which of the following is not an automatic stabilizer?
A)Social security payments
B)Unemployment compensation
C)Taxes
D)Welfare payments
E)Military expenditures

Question

Quizplus · Accepted Answer

Automatic stabilizers are government policies that help to stabilize the economy during economic fluctuations without any additional government action. They include social security payments, unemployment compensation, and welfare payments, which all increase during economic downturns. Taxes, on the other hand, act as a destabilizing force, as they decrease during economic downturns due to lower incomes. Military expenditures do not qualify as automatic stabilizers as they do not change automatically in response to economic fluctuations.

Which of the Following Is Not an Automatic Stabilizer