An advantage of automatic stabilizers is that this type of fiscal policy

Question

Quizplus · Accepted Answer

Automatic stabilizers do not require any specific action or decision from the government, and they kick in automatically during periods of economic instability without any lag time problems. Therefore, option C is the correct answer. Option A is incorrect because automatic stabilizers do not require precise knowledge of full-employment real GDP, and they work based on the current economic conditions. Option B is incorrect because special interest groups do not influence automatic stabilizers, as they are not designed to address specific concerns or interests. Option D is incorrect because automatic stabilizers do not accelerate or influence the direction in which the economy is moving at the time, but they rather help stabilize the economy during times of economic instability.

An Advantage of Automatic Stabilizers Is That This Type of Fiscal