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Choose ALL that Apply During a recession, automatic stabilizers include(s): Income tax revenues. Unemployment benefits. Income...

Choose ALL that Apply

During a recession, automatic stabilizers include(s):

Income tax revenues.
Unemployment benefits.
Income tax rates.
Social Security payments.
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Answer #1

Option 2,3,4

Automatic stabilizers are those who work in the opposite direction of the economic changes.

If there is a recession, then the unemployment benefits and social security payments help to stimulate the economy and also the tax rates decrease automatically as the income decreases and the tax decreases because most of the countries use progressive tax structures. Where a higher income is taxed more and lower income taxed less if the taxes are low the consumer's income increases and consumption increases.

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