which of the following is an example of an automatic stabilizer course hero

by Tracey Rice DDS Published 2 years ago Updated 1 year ago 3 min read

Which of the following is an example of an automatic stabilizer?

The best example of automatic stabilizers are: Progressively increasing corporate income taxes. Gradually increasing personal income taxes. Unemployment insurance collected by employed workers.Mar 9, 2021

Which of the following is an example of an automatic stabilizer which of the following is an example of an automatic stabilizer?

An example of an automatic stabilizer is unemployment benefits. During recessions the economy experiences insufficient aggregate demand, the unemployment benefits help to increase aggregate demand.

Which of the following is an example of an automatic stabilizer ?'?

Two examples of automatic stabilizers are unemployment insurance payments, which increase during a recession as more workers become unemployed, and income taxes, which decrease during a recession as incomes fall. During expansions unemployment insurance payments decrease and income taxes increase.

Which of the following describes an automatic stabilizer?

Which of the following best defines automatic stabilizers? Automatic stabilizers are tax and spending rules that have the effect of slowing down the rate of decrease in aggregate demand when the economy slows down and restraining aggregate demand when the economy speeds up, without any additional change in legislation.

Which is not an example of an automatic stabilizer?

Which of the following is not an example of an automatic stabilizer? welfare reform makes it more difficult to receive welfare even when the economy enters a recession. Welfare reform requires deliberate legislative action; therefore, it is not an automatic stabilizer.

What are automatic stabilizers quizlet?

automatic stabilizers are. economic policies and programs designed to offset fluctuations in a nation's economic activity without intervention by the government or policymakers on an individual basis.

Which of the following is an example of stabilizer?

Stabilizers commonly used are sodium alginate, sodium carboxymethyl cellulose (CMC), guar gum, locust bean gum, carrageenan, gelatin, and pectin.

What are automatic stabilizers name two examples of automatic stabilizers and explain how they can reduce the severity of a recession?

What are automatic stabilizers? Government spending and taxes that automatically increase or decrease along with the business cycles. Name two examples of automatic stabilizers and explain how they can reduce the severity of a recession. Income taxes, which decrease during a recession as incomes fall.

Which of the following is an example of an automatic stabilizer progressive income taxes?

Progressive income taxes are an example of an automatic stabilizer because individual income-tax payments will fall when incomes fall during recessions, thereby stimulating aggregate demand without any discretionary policy actions being taken, and rise when incomes rise during expansions, thereby contracting aggregate ...

Which of the following is an example of an automatic stabilizer that helps control inflation?

Tax revenues are an example of an automatic stabilizer.

What is automatic stabilizers in economics?

Automatic stabilizers are mechanisms built into government budgets, without any vote from legislators, that increase spending or decrease taxes when the economy slows.Jul 2, 2019

What causes automatic stabilizers?

When the economy is performing extremely well, the standardized employment deficit (or surplus) is higher than the actual budget deficit (or surplus) because the economy is producing about potential GDP, so the automatic stabilizers are increasing taxes and reducing the need for government spending.