An annually balanced budget can only be met if automatic stabilizers are effective.

Question

Quizplus · Accepted Answer

Automatic stabilizers are designed to offset economic fluctuations without requiring any additional government intervention. However, they can lead to increases in government spending or decreases in tax revenue, which means that an annually balanced budget may not be possible unless other measures are taken to offset these effects. Therefore, the statement is false.

An Annually Balanced Budget Can Only Be Met If Automatic