Asked by
Trelani Mcgill2020
on Nov 30, 2024
Verified
Which of the following has the effect of being a built-in stabilizer for the economy?
A) Progressive income tax
B) Welfare programs
C) Unemployment compensation
D) All of the choices are correct
Built-in Stabilizer
Economic policies or instruments, like progressive taxation and welfare, that automatically reduce the amplitude of economic fluctuations without additional government intervention.
Progressive Income Tax
A tax system in which the tax rate increases as the taxable amount increases, generally applied to income tax to ensure higher earners pay a larger percentage of their income.
Unemployment Compensation
Unemployment Compensation is a government-provided financial assistance to individuals who have lost their job through no fault of their own, aiming to support them temporarily.
- Absorb the purposes and impacts of automatic stabilizers within an economic framework, with an emphasis on their positive aspects and how they are implemented during periods of economic fluctuation.
Verified Answer
SB
Learning Objectives
- Absorb the purposes and impacts of automatic stabilizers within an economic framework, with an emphasis on their positive aspects and how they are implemented during periods of economic fluctuation.