One characteristic of automatic fiscal policy is that it
A) requires no legislative action by Congress to be made effective.
B) automatically produces surpluses during recessions and deficits during inflation.
C) has no effect on unemployment.
D) reduces the size of the federal government debt during times of recession.

Question

Quizplus · Accepted Answer

Automatic fiscal policy refers to built-in stabilizers like taxes and government spending that adjust automatically without the need for new legislative action, helping to moderate the business cycle.

One Characteristic of Automatic Fiscal Policy Is That It