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What is an example of an automatic fiscal policy stabilizer?

Most taxes have a stabilizing effect because they automatically move with economic growth. For example, personal and corporate income tax collections decline during recessions along with income and profits, and payroll tax collections decline when employment and wages fall.

Which of the following is an example of an automatic fiscal policy stabilizer quizlet?

Two examples of automatic stabilizers are unemployment insurance payments, which increase during a recession as more workers become unemployed, and income taxes, which decrease during a recession as incomes fall.

Which of these is an example of an automatic stabilizer?

Some examples of automatic stabilizers are unemployment insurance, food stamps, and the progressive income tax system.

Which of the following is an example of automatic expansionary fiscal policy?

The two major examples of expansionary fiscal policy are tax cuts and increased government spending. Both of these policies are intended to increase aggregate demand while contributing to deficits or drawing down budget surpluses.