A Major Advantage of the Built-In or Automatic Stabilizers Is

question 111

Multiple Choice

A major advantage of the built-in or automatic stabilizers is that they:

• A)simultaneously stabilize the economy and reduce the absolute size of the public debt.
• B)automatically produce surpluses during recessions and deficits during inflations.
• C)require no discretionary budgetary policy.
• D)guarantee that the federal budget will be balanced over the course of the business cycle.

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Definitions:

P

In statistics, typically refers to the p-value, which measures the probability of observing a statistical summary as extreme as the one observed, under the null hypothesis.

Normal Random Variable

A variable that follows a normal distribution in its value distribution.

Standard Deviation

A measure of the amount of variation or dispersion in a set of values, indicating how spread out the numbers are from the mean.

Mean

The arithmetic average of a set of values, calculated by adding all the values together and then dividing by the number of values.