A major advantage of the built-in or automatic stabilizers is that they:
A)simultaneously stabilize the economy and reduce the absolute size of the public debt.
B)automatically produce surpluses during recessions and deficits during inflations.
C)require no discretionary budgetary policy.
D)guarantee that the federal budget will be balanced over the course of the business cycle.

Question

Quizplus · Accepted Answer

Built-in or automatic stabilizers work without the need for discretionary budgetary policy, which means that they are automatic and designed to stabilize the economy during times of recession or inflation. This design allows for a more stable economy without the need for constant intervention, which also saves time and resources. However, automatic stabilizers do not guarantee a balanced budget, and they may not reduce the absolute size of the public debt.

A Major Advantage of the Built-In or Automatic Stabilizers Is