________ can eliminate recognition lags and implementation lags and thereby alleviate some concerns of destabilizing fiscal policy.
A) Automatic stabilizers
B) Discretionary fiscal policy
C) Monetary policy
D) Expansions
E) Recession

Question

Quizplus · Accepted Answer

Automatic stabilizers, such as progressive income taxes and unemployment insurance, operate automatically without the need for government action or legislation. They can help stabilize the economy during economic downturns or during inflationary periods by providing fiscal stimulus or contraction without the delays associated with discretionary fiscal policy.

________ Can Eliminate Recognition Lags and Implementation Lags and Thereby