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:

Adaptive Changes

Adjustments or modifications in organisms or populations that enhance their survival and reproductive success in a particular environment.

Natality

The rate at which individuals produce offspring; the average per capita birth rate.

Offspring

The product of reproduction, a new organism produced by one or more parents.

Population Size

The number of individuals in a species or specific group of living organisms inhabiting a particular geographic area.