Which of the following is not an automatic stabilizer?
A) Personal income tax revenue.
B) Corporate income tax revenue.
C) Unemployment compensation benefits.
D) Property tax revenue.

Question

Quizplus · Accepted Answer

Property taxes are not automatic stabilizers because they are generally set as a fixed percentage of the assessed value of a property and do not automatically increase or decrease in response to changes in the business cycle or economic conditions. In contrast, personal income tax revenue, corporate income tax revenue, and unemployment compensation benefits all tend to fluctuate with changes in economic conditions, and therefore act as automatic stabilizers.

Which of the Following Is Not an Automatic Stabilizer