Which is NOT an automatic stabilizer?
A) greater access to credit
B) defense spending
C) progressive tax system
D) welfare programs

Question

Quizplus · Accepted Answer

Automatic stabilizers are government policies that help stabilize the economy without any further action from policymakers. Defense spending is not an automatic stabilizer, as changes in defense spending are typically the result of deliberate policy decisions made by policymakers, rather than automatic adjustments in response to economic conditions. A, C, and D are all examples of automatic stabilizers. Greater access to credit allows individuals and businesses to borrow more easily during times of economic downturn, while a progressive tax system and welfare programs automatically increase government spending to support those in need during times of economic hardship.

Which Is NOT an Automatic Stabilizer