All of the following,except one,are examples of automatic stabilizers.Which is the exception?
A)Progressive income taxes.
B)Expenditures on education which automatically rise when the number of school-aged children increases.
C)Welfare payments which increase when the economy suffers a recession.
D)Employment insurance which decreases when the economy is doing well.

Question

Quizplus · Accepted Answer

Automatic stabilizers are economic policies and programs designed to offset fluctuations in a nation's economic activity without intervention by the government or policymakers. While progressive income taxes, welfare payments, and employment insurance automatically adjust to economic conditions, acting as automatic stabilizers, expenditures on education that rise with the number of school-aged children do not automatically adjust to the economic cycle and thus do not serve as automatic stabilizers in the context of economic fluctuations.

All of the Following,except One,are Examples of Automatic Stabilizers