Economics · Fiscal Policy
Which of the following is considered an Automatic Stabilizer in the context of Fiscal Policy?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1The Reserve Bank of India changing the Cash Reserve Ratio to manage inflation.
- 2Progressive income tax systems where tax collections rise during economic booms and fall during recessions.✓
- 3The implementation of a new Goods and Services Tax slab to increase revenue.
- 4A mid-year decision by the government to increase infrastructure spending.
Correct answer
Progressive income tax systems where tax collections rise during economic booms and fall during recessions.
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Economics?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Fiscal Policy MCQs →Want more practice questions on Fiscal Policy?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Economics · Fiscal Policy