An advantage of automatic stabilizers over discretionary fiscal policy is that
A) automatic stabilizers require only a simple majority of Congress to pass whereas discretionary fiscal policy requires a two- thirds majority to pass.
B) only the President is involved in implementing automatic stabilizers instead of both the President and Congress.
C) automatic stabilizers are not subject to all the same time lags that discretionary fiscal policy is.
D) automatic stabilizers can be easily fine- tuned to move the economy to full employment.

Question

Quizplus · Accepted Answer

Automatic stabilizers operate automatically in response to changes in economic conditions without the need for new legislation or administrative action. Thus, they are not subject to the same implementation lags that discretionary fiscal policy is. Therefore, they can be effective in stabilizing the economy more quickly than discretionary policies.

An Advantage of Automatic Stabilizers Over Discretionary Fiscal Policy Is