Automatic, or built-in, stabilizers
Which of the following are examples of automatic stabilizers? Check all that apply.
In 2001, partly in response to a recession, Congress enacted lower income tax rates and increased tax exemptions for married couples.
In response to the 1981-82 recession, the U.S. government passed a law that lowered personal income tax rates.
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.