One characteristic of built-in or automatic stabilizers is that
A) they require no legislative action by Parliament to be made effective.
B) they automatically produce surpluses during recessions and deficits during inflation.
C) they have no effect on the distribution of income.
D) they reduce the size of the public debt during times of recession.
Correct Answer:
Verified
Q92: A recent government proposal to increase marginal
Q93: The effect time lag of fiscal policy
Q94: We know that discretionary fiscal policy
A)is never
Q95: Suppose there are two policy options facing
Q96: The net export effect occurs when
A)increased government
Q98: The various time lags involved with fiscal
Q99: The time that is required to collect
Q100: An example of an automatic stabilizer is
A)unemployment
Q101: Suppose the government believes the economy is
Q102: What are automatic stabilizers? How do they
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents