Which of the Following Would Not Be Considered an Automatic

question 28

Multiple Choice

Which of the following would not be considered an automatic stabilizer?

• A) rising corporate income tax revenues due to an expanding economy
• B) increasing welfare payments due to more people becoming unemployed during a recession
• C) legislation increasing funding for job retraining passed during a recession
• D) decreasing employment insurance payments due to increased employment during an expansion

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Definitions:

Poor

Lacking sufficient money to live at a standard considered comfortable or normal in a society.

Female-Headed Households

Households that are led by a female as the primary decision-maker or head of the household.

Poverty Line

The minimum level of income deemed adequate in a particular country to live on and meet basic living needs.

Income

The money received, especially on a regular basis, for work or through investments.