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Lana71 [14]
3 years ago
15

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.
Business
1 answer:
hoa [83]3 years ago
6 0

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

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<h3>What is free-enterprise system?</h3>

Free enterprise can as well be described as the  free market or capitalism, which is a  economic system that is been  driven by supply and demand.

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