Which of the following actions results in the shortest lag between recognition of a problem and an appropriate stabilization response?
A)Congress takes authority over stabilization and is not required to wait for the executive branch to respond.
B)The appropriation and authorization responsibilities of Congress are transferred to the executive branch in order to eliminate congressional lags.
C)Congress writes legislation providing more automatic stabilizers in the economy.
D)Congress provides limited authority to the president to alter fiscal or monetary policy for the purpose of stabilization.

Question

Quizplus · Accepted Answer

Automatic stabilizers in the economy, such as unemployment insurance and progressive taxation, adjust automatically without the need for new legislation or policy changes, thus reducing the lag between recognizing an economic problem and responding to it.

Which of the Following Actions Results in the Shortest Lag