Which of the Following Is an Advantage of Automatic Stabilizers

question 62

Multiple Choice

Which of the following is an advantage of automatic stabilizers?

• A) The lag for automatic stabilizers is relatively long.
• B) It is much easier to measure the impact of automatic stabilizers compared to the impact of discretionary fiscal policy.
• C) There is no administrative cost to implementing automatic stabilizers.
• D) Because they affect disposable personal income directly, automatic stabilizers act swiftly to reduce the degree of changes in real GDP.

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