What is the distinction between discretionary fiscal policy and the use of automatic stabilizers?
A) Only discretionary fiscal policy can stimulate the economy.
B) Only automatic stabilizers can stimulate the economy.
C) Discretionary fiscal policy, once adopted, is built into the structure of the economy, while automatic stabilizers are NOT.
D) Automatic stabilizers, once adopted, are built into the structure of the economy, while discretionary fiscal policy is NOT.

Question

What is the distinction between discretionary fiscal policy and the use of automatic stabilizers?  
A) Only discretionary fiscal policy can stimulate the economy. 
B) Only automatic stabilizers can stimulate the economy. 
C) Discretionary fiscal policy, once adopted, is built into the structure of the economy, while automatic stabilizers are NOT. 
D) Automatic stabilizers, once adopted, are built into the structure of the economy, while discretionary fiscal policy is NOT.

Quizplus · Accepted Answer

Automatic stabilizers are mechanisms built into the economic structure, such as taxes and welfare, that automatically adjust to economic changes to stabilize the economy. Discretionary fiscal policy involves deliberate government action, like changing spending or taxation, in response to economic conditions, and is not built into the economy's structure.

What Is the Distinction Between Discretionary Fiscal Policy and the Use