Factors of Automatic Stabilizer

There are various factors that are included in the Automatic Stabilizer in Macroeconomics and they are as follows:
Discretionary Fiscal Policy: This type of policy is applied to the limit that is above and below the existing fiscal policy of the government and takes place when the case arises where there is frequent change in the economic recession. They are implied to the non-mandatory change that takes place in taxation that occurs during certain fiscal activities of the government regarding the economic condition and the other economic events.
Non-discretionary Fiscal Policy: This type of policy refers to the strategies that are designed for the alternate oscillation that takes place in the activities of economic of the country excluding the involvement of the government.
Active Fiscal Policy: This type of active policy is applicable to the monetary policy that a central bank uses for the money supply to the nation. By this strategy, the government limits its spending levels and the rate of tax for monitoring the economy of nation to find how the policy is influenced. This can also be called as the Automatic Stabilizer Fiscal Policy.
Induced Tax: There are various types of tax factor that takes place in the government and the tax revenue mainly depends on the income of household and the activity involving the economy. The various tax parameters are:
Income tax: this type of tax generally refers to the progressive process
Corporate tax: profit is the main concentration of this type of tax while revenue is a comparison factor. When a recession takes place, the profits have a deep fall faster when compared to the revenue
Sales tax: it is calculated based on the dollar volume which falls in recession
Transfer payments: unemployment and welfare benefits are paid by the government and as the recession increases in absolute terms, the benefits will decrease, that will, lead to a circumstance.