The Earned Income Tax Credit Is an Example of a

question 23

Multiple Choice

The Earned Income Tax Credit is an example of a

• A)minimum-wage law.
• B)price ceiling.
• C)wage subsidy.
• D)rent subsidy.

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Definitions:

Automatic Stabilizer

Economic policies and programs, such as unemployment benefits, that automatically adjust to stabilize an economy's fluctuations without direct intervention by policymakers.

Welfare

Financial and social support programs provided by the government to assist individuals and families in need.

Transfer Payments

Money or benefits distributed by the government to individuals without requiring a direct exchange of goods or services, often aimed at providing social welfare.

Tax Cuts

Reductions in the amount of tax that individuals or corporations are required to pay to the government.