Which of the following is NOT an example of an automatic stabilizer?

A) Social Security payments
B) Unemployment compensation
C) Tax hikes that enable a balanced budget
D) Progressive personal income tax rates
E) Unemployment benefits

Automatic Stabilizer

Economic policies and programs, like unemployment insurance and progressive taxation, designed to automatically adjust to changes in economic conditions to stabilize the economy.

Tax Hikes

Tax hikes involve an increase in the tax rates or the imposition of new taxes by the government, affecting individuals, businesses, and economic activities.

Progressive Personal Income Tax

A tax system where the tax rate increases as the taxable income of the taxpayer increases, imposing higher rates on those with higher incomes.