Which of the following is an example of an automatic stabilizer?O Congress legislates lower tax rates to increase consumption and investment.O Tax rates are increased during a recession to maintain a balanced budget.O A regressive income tax system reduces tax revenues (as a share of income) as income expands.O Revenues from the income tax increase sharply during a business boom but decline substantially during arecession, even though no new tax legislation has been enacted.

Automatic stabilizer are such policy tools that automatically adjust as per the need and situation…

Which of the following is an example of an automatic stabilizer? Congress legislates lower tax rates to increase consumption and investment. Tax rates are increased during a recession to maintain a balanced budget. A regressive income tax system reduces tax revenues (as a share of income) as income expands. O Revenues from the income tax increase sharply during a business boom but decline substantially during a recession, even though no new tax legislation has been enacted.

Which of the following is an example of an automatic stabilizer? Congress legislates lower tax rates to increase consumption and investment. Tax rates are increased during a recession to maintain a balanced budget. A regressive income tax system reduces tax revenues (as a share of income) as income expands. O Revenues from the income tax increase sharply during a business boom but decline substantially during a recession, even though no new tax legislation has been enacted.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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