Answered

Westonci.ca is the ultimate Q&A platform, offering detailed and reliable answers from a knowledgeable community. Discover comprehensive answers to your questions from knowledgeable professionals on our user-friendly platform. Get precise and detailed answers to your questions from a knowledgeable community of experts on our Q&A platform.

Which of the following are examples of automatic stabilizers? Check all that apply. As corporate profits rise during an economic expansion, corporate income tax revenues rise. As people earn higher incomes during an expansion, the progressive tax system requires them to pay higher average tax rates. As unemployment falls during an expansion, unemployment insurance payments decline. In 2001, partly in response to a recession, Congress enacted lower income tax rates and increased tax exemptions for married couples.

Sagot :

Answer:

As people earn higher incomes during an expansion, the progressive tax system requires them to pay higher average tax rates

Explanation:

Automatic stabilizers are stabilizers that adjust the economy automatically without the intervention of external agents . examples include progressive tax and transfer payments

In an expansion, progressive tax increases the tax paid and this reduces disposable income

In a contraction, tax paid is reduced and this increases disposable income

Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. We hope this was helpful. Please come back whenever you need more information or answers to your queries. Westonci.ca is committed to providing accurate answers. Come back soon for more trustworthy information.