One advantage of automatic stabilizers over discretionary fiscal policy is that automatic stabilizers:
A) do not have a long time lag problem.
B) do not affect the government budget balance.
C) have a much stronger impact on economic growth rates.
D) affect both employment and inflation rates rather than just inflation.

Question

Quizplus · Accepted Answer

Automatic stabilizers, such as unemployment benefits and progressive tax systems, automatically adjust to changes in economic conditions without the need for new government action, thus avoiding the long time lags associated with implementing discretionary fiscal policies.

One Advantage of Automatic Stabilizers Over Discretionary Fiscal Policy Is