Introduction to Economics 2 Deneme Sınavı Sorusu #349665

Which of the following is the primary automatic stabilizer?


Production surplus

 

Public sector revenues

 

Inflationary gap

 

Inflationary pressure

Income tax


Yanıt Açıklaması:

The primary automatic stabilizer is the income tax. Of the income taxes, automatic stabilizer characteristic is more clear and also significant in progressive income tax. Taxes collected over income are in the center of a tax system. When production (i.e., income) increases in an economy, total income tax revenue of the government increases as well and vice versa. In progressive income tax system, tax rate that a person has to pay increases with the income of that person obtains.

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