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An Advantage of Automatic Stabilizers Over Discretionary Fiscal Policy Is

Question 86

Multiple Choice

An advantage of automatic stabilizers over discretionary fiscal policy is that


A) automatic stabilizers are not subject to all the same time lags that discretionary fiscal policy is.
B) automatic stabilizers can be easily fine-tuned to move the economy to full employment.
C) only Parliament is involved in implementing automatic stabilizers instead of both Parliament and the Bank of Canada.
D) automatic stabilizers require only a simple majority of Parliament to pass whereas discretionary fiscal policy requires a two-thirds majority to pass.
E) automatic stabilizers work in recessions and expansions but discretionary fiscal policy works only in a recession.

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