Automatic stabilizers are fiscal policy measures that
A) must be determined by the Congress in each budget.
B) do not require new legislation.
C) are determined by the Federal Reserve System.
D) are part of discretionary fiscal policy.

Question

Quizplus · Accepted Answer

Automatic stabilizers do not require new legislation as they are built into the existing tax and spending policies. They automatically activate during economic downturns without the need for Congressional action.

Automatic Stabilizers Are Fiscal Policy Measures That