Which of the Following Is NOT an Automatic Stabilizer

question 78

Multiple Choice

Which of the following is NOT an automatic stabilizer?

• A) the minimum wage
• B) the employment insurance benefits
• C) the federal income tax
• D) the welfare system

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Definitions:

Government Salaries

Payments made to employees of the government, influencing public sector spending and economic activity.

Budget Process

The procedure by which governments create and approve a budget, detailing the planned revenues and expenditures for the upcoming fiscal period.

Providing Externalities

The act of producing results (positive or negative) that affect third parties who are not directly involved in the economic transaction.

Promoting Competition

Strategies and policies implemented to encourage rivalry among businesses, aimed at improving quality, lowering prices, and fostering innovation.