A major benefit of automatic stabilizers is that they:
A)guarantee a balanced budget over the course of the business cycle.
B)have a tendency to reduce the national debt.
C)help increase recessionary gaps in the economy.
D)moderate the effect of fluctuations in the business cycle.
E)require legislative review by Congress before they can be implemented.

Question

Quizplus · Accepted Answer

Automatic stabilizers moderate the effect of fluctuations in the business cycle, helping to stabilize economic growth and reduce the severity of economic downturns without requiring legislative action. They do not guarantee a balanced budget, reduce the national debt, increase recessionary gaps, or require legislative review before implementation.

A Major Benefit of Automatic Stabilizers Is That They