Automatic Stabilizers

question 321

Multiple Choice

Automatic stabilizers

• A)are programs which require legislative action.
• B)are changes in federal corporate and personal income taxes.
• C)affect national income,the unemployment rate,and other measures of macroeconomic activity.
• D)only work during economic contractions.
• E)only work during economic expansions.

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Definitions:

Maintenance

Activities and practices aimed at keeping equipment, systems, and facilities in optimal working condition, as well as preserving the well-being and performance of employees.

Pre-Tax Income

The amount of income earned by a business or individual before any taxes have been deducted.

Publicly Traded

Refers to a company whose shares are available for purchase by the public on stock exchanges.

Tax Burden

The total amount of taxes paid by an individual or business, expressed as a percentage of income.