Which of the following is not an automatic stabilizer?
A)the minimum wage
B)the unemployment compensation system
C)the federal income tax
D)the welfare system

Question

Quizplus · Accepted Answer

Automatic stabilizers are policies and programs that automatically adjust to changes in economic activity without requiring additional action from policymakers. The minimum wage is not an automatic stabilizer because it does not adjust automatically to changes in economic activity. It requires legislative action to change the minimum wage. The other options listed (unemployment compensation, federal income tax, welfare system) are automatic stabilizers because they adjust automatically based on economic conditions.

Which of the Following Is Not an Automatic Stabilizer