An Example of Automatic Stabilizers Is

question 59

Multiple Choice

An example of automatic stabilizers is

• A) government spending rising in a recession.
• B) taxes rising in a recession.
• C) taxes falling in an expansion.
• D) all of the above

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Definitions:

Medical Expense Deduction

An itemized deduction for taxpayers who have incurred significant medical and dental expenses exceeding a certain percentage of their adjusted gross income.

Jacuzzi

A brand name often used generically to refer to any hot tub or whirlpool bath with underwater jets that massage the body.

Adjusted Gross Income

Adjusted Gross Income, or AGI, is an individual's total gross income minus specific deductions, used to determine taxable income on an income tax return.

Casualty Loss Deduction

A tax deduction allowed for losses from sudden, unexpected, or unusual events, such as natural disasters, fire, or theft, not compensated by insurance.