Which of the following is an example of an automatic stabilizer in the budget?

CA Foundation · Business Economics · MTP · May 2026
Which of the following is an example of an automatic stabilizer in the budget?
(A) A. Discretionary spending
(B) B. Progressive taxation
(C) C. Infrastructure investment
(D) D. Unemployment benefits

Suggested Answer and Working Notes:

Correct Answer: Option (D)

D. Unemployment benefits

Topics: Public Finance

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