An Example of an Automatic Stabilizer Is

question 103

Multiple Choice

An example of an automatic stabilizer is

• A) personal income taxes.
• B) inheritance taxes.
• C) veterans' benefits.
• D) corporate dividends.

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Definitions:

Price of Capital

The cost of using capital assets in production, which can include interest rates on loans or opportunity costs of using owned capital.

Price of Labor

The wage or salary paid for the services of an employee or worker; essentially the cost of hiring labor.

Isocost Line

A line on a graph representing all combinations of inputs that have the same total cost.

Price of Capital

The cost of using capital goods, such as machinery or buildings, often expressed in terms of interest rates or rental rates.