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

question 14

Multiple Choice

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

• A) guarantee the federal budget will be balanced over the course of the business cycle.
• B) require no Congressional action to be effective.
• C) automatically produce surpluses during recessions and deficits during inflation.
• D) require discretionary actions on the part of Congress before they exert an impact on output and employment.

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Definitions:

Observations

Data points or elements collected during an experiment or study which represent individual pieces of information about the phenomena being studied.

Multiple Regression Model

A statistical technique that predicts the outcome of a response variable based on multiple explanatory variables.

Units

Basic quantities or items in measurement or statistics that are counted or measured in a dataset.