Which of the following are examples of automatic stabilizers? Check all that app

Question

Which of the following are examples of automatic stabilizers? Check all that apply. As sales decline during a recession, sales and excise tax revenues fall. As people spend more during an expansion, the additional spending on imports does not stimulate domestic production in the next round. As Incomes rise, consumption spending on domestic goods rises as well. In response to the 2008 recession, Congress approved billions of dollars of additional spending on public infrastructure projects. As poverty rates rise during a recession, more people qualify for welfare, and welfare payments increase.

Explanation / Answer

Ans: option 1, 4 & 5

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