Praxis II Citizenship

Answer: C - Tax revenue does not increase automatically during a recession, so it is not an automatic stabilizer. Automatic stabilizers are economic changes that occur independently without explicit action by the government. Tax revenue automatically decreases during a recession, which is not stabilizing. As more workers face unemployment or reduced shifts during a recession, their income decreases, which causes their income taxes to decrease. Tax revenue could increase during a recession, but the government would have enact legislation to cause that to happen.