Which of the following are examples of automatic stabilizers? check all that apply.

4. Automatic stabilizers Which of the following are examples of automatic stabilizers? Check all that apply. As poverty rates rise during a recession, more people qualify for welfare, and welfare payments increase. In 2001, partly in response to a recession, Congress enacted lower income tax rates and increased tax exemptions for married couples. As people earn higher incomes during an expansion, the progressive tax system requires them to pay higher average tax rates. In response to the 1981-82 recession, the U.S. government passed a law that lowered personal income tax rates. 4. Automatic stabilizers Which of the following are examples of automatic stabilizers? Check all that apply. As poverty rates rise during a recession, more people qualify for welfare, and welfare payments increase. In 2001, partly in response to a recession, Congress enacted lower income tax rates and increased tax exemptions for married couples. As people earn higher incomes during an expansion, the progressive tax system requires them to pay higher average tax rates. In response to the 1981-82 recession, the U.S. government passed a law that lowered personal income tax rates.

Automatic stabilizers refer to the economic p the fluctuations in the economy without any government intervention. Therefore, it includes examples like, corporate taxes, transfer payments and unemployment insurance and welfare schemes olicies and programs which are planned to offset Hence, the examples of automatic stabilizers are, During recession as poverty rates rise, more people wll be qualified for the welfare and e During recessions when people earn higher income, their income will grow and automatically their spending will be lowered due to the progressive tax Hence, the correct options are “a” and “c”.
4. Automatic stabilizers Which of the following are examples of automatic stabilizers? Check all that apply. As poverty rates rise during a recession, more people qualify for welfare, and welfare payments increase. In 2001, partly in response to a recession, Congress enacted lower income tax rates and increased tax exemptions for married couples. As people earn higher incomes during an expansion, the progressive tax system requires them to pay higher average tax rates. In response to the 1981-82 recession, the U.S. government passed a law that lowered personal income tax rates.

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