As the economy declines into recession, the collection of personal income tax revenues automatically falls. This phenomenon best illustrates how a progressive income tax system Multiple Choice C) increases crowding out in the economy decreases real interest rates in the economy ооо offsets the timing problem for fiscal policy Serves as an automatic stabiler for the economy Which of the following is an example of built-in stability? As real GDP decreases, Multiple Choice o income tax revenues increase and transfer payments decrease. o income tax revenues decrease and transfer payments increase, o income tax revenues and transfer payments both decrease. o income tax revenues and transfer payments both increase.
