Which of the following statements is not true with regard to automatic stabilizers?
A)The most important automatic stabilizer is the tax system.
B)They act as shock absorbers to the economy.
C)They require legislative action.
D)Automatic stabilizers like government transfer payments change as business cycles conditions change.

Question

Which of the following statements is not true with regard to automatic stabilizers?
A)​The most important automatic stabilizer is the tax system.
B)​They act as shock absorbers to the economy.
C)​They require legislative action.
D)​Automatic stabilizers like government transfer payments change as business cycles conditions change.

Quizplus · Accepted Answer

Automatic stabilizers do not require legislative action as they are built into the government's taxation and spending programs. Their purpose is to automatically adjust to changes in the economy to stabilize it, without needing intervention from the government.

Which of the Following Statements Is Not True with Regard