Automatic stabilizers
A) are government programs that automatically implement countercyclical monetary policy in response to economic conditions.
B) must be approved by Congress every time they are to be implemented.
C) experience recognition lags.
D) experience implementation lags.
E) are government programs that automatically implement countercyclical fiscal policy in response to economic conditions.

Question

Quizplus · Accepted Answer

Automatic stabilizers are government programs that automatically implement countercyclical fiscal policy in response to economic conditions. They do not require Congress approval every time they are to be implemented. However, they do experience recognition lags and implementation lags.

Automatic Stabilizers