Which of the following is an advantage of automatic stabilizers?
A) The lag for automatic stabilizers is relatively long.
B) It is much easier to measure the impact of automatic stabilizers compared to the impact of discretionary fiscal policy.
C) There is no administrative cost to implementing automatic stabilizers.
D) Because they affect disposable personal income directly, automatic stabilizers act swiftly to reduce the degree of changes in real GDP.
Correct Answer:
Verified
Q49: During a recession, unemployment insurance ensures that
A)
Q50: In 2003, Congress passed a substantial cut
Q51: During an expansion, which of the following
Q52: A transfer payment that rises automatically during
Q53: Which of the following describes a discretionary
Q55: During an economic expansion,
A) higher income tax
Q56: Automatic stabilizers
A) increase the problems that lags
Q57: Expansionary fiscal policy includes
A) increasing taxes and
Q58: Suppose Congress increases the corporate profit tax
Q59: A contractionary fiscal policy
I. decreases a government
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