Which One of the Following Is NOT an Automatic Stabilizer

question 136

Multiple Choice

Which one of the following is NOT an automatic stabilizer?

• A) the income tax system
• B) the system of national defense procurement
• C) the system of welfare payments
• D) unemployment compensation programs

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Definitions:

Economic Activity

Actions that involve the production, distribution, and consumption of goods and services at all levels within a society.

Benefits

Refers to various forms of compensation employees receive from their employers, which may include health insurance, retirement plans, and paid time off.

Short-Term Interest Rates

Interest rates on loan or debt obligations with a maturity of less than one year, influencing borrowing costs and economic activity.

Housing Prices

The financial cost required to purchase residential properties; influenced by location, demand, and other economic factors.