Which of the following is not an automatic stabilizer?
A)Progressive income taxes.
B)Unemployment benefits.
C)Welfare payments.
D)Defense spending.

Question

Quizplus · Accepted Answer

Automatic stabilizers are government spending or tax policies that automatically counteract economic fluctuations without any additional legislative action. Defense spending is not an automatic stabilizer as it does not respond to changes in the economy, but rather is determined by other factors such as national security priorities and foreign policy.

Which of the Following Is Not an Automatic Stabilizer