Which of the following is an automatic stabilizer?
a. proportional tax rates
c. excise tax
b. unemployment insurance
d. property tax select the best answer from the choices provided a b c d

D). Property tax.

Explanation:

An automatic stabilizer can be described as an element of the government's fiscal policy to neutralize the fluctuations in the economy in a normal manner without bringing any explicit policy. It most prominently includes personal taxes and expenditure on public welfare that automatically reduces the severity of the condition and stabilize the economy during recessions. This stabilizer is backed by Keynesian economics as an effective tool which includes adjustment of tax rates and transfer payments to balance the economy. Thus, property tax exemplifies an automatic stabilizer.

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