Johnny has been working a lot of overtime during the most current economic boom. As a result, his income is high enough for him to move from the 10 percent tax bracket to the 15 percent tax bracket. So, Johnny pays a higher percentage of a higher income to the government this year. The increased amount paid to the government is an example of:
A. discretionary fiscal policy slowing the economy.
B. discretionary fiscal policy encouraging economic activity.
C. automatic stabilizers slowing the economy.
D. automatic stabilizers encouraging economic activity.
Answer: C
Economics
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