Which of the following would not be considered an automatic stabilizer?
A)legislation increasing funding for job retraining passed during a recession
B)decreasing unemployment insurance payments due to decreased jobless during an expansion
C)rising income tax collections due to rising incomes during an expansion
D)declining food stamp payments due to more persons finding jobs during an expansion

Question

Quizplus · Accepted Answer

Automatic stabilizers are mechanisms that automatically adjust government spending and tax collections in response to changes in the economy, without the need for new legislation. Option A indicates legislation that would not be automatic, as it requires new legislation to be passed. Options B, C, and D are all examples of automatic stabilizers, as they involve changes in government spending or tax collections based on changes in economic conditions.

Which of the Following Would Not Be Considered an Automatic