An Advantage of Automatic Stabilizers Over Discretionary Fiscal Policy Is

question 22

Multiple Choice

An advantage of automatic stabilizers over discretionary fiscal policy is that

• A)automatic stabilizers are not subject to all the same time lags that discretionary fiscal policy is.
• B)automatic stabilizers can be easily fine-tuned to move the economy to full employment.
• C)only Parliament is involved in implementing automatic stabilizers instead of both Parliament and the Bank of Canada.
• D)automatic stabilizers require only a simple majority of Parliament to pass whereas discretionary fiscal policy requires a two-thirds majority to pass.
• E)automatic stabilizers work in recessions and expansions but discretionary fiscal policy works only in a recession.

---

Definitions:

Genetic Predisposition

The increased likelihood of developing a particular disease or trait based on a person's genetic makeup.

History of Trauma

Refers to the personal and collective experiences and emotional responses to deeply distressing or disturbing events in an individual's or group's past.

Borderline Personality Disorder

A mental health disorder characterized by unstable moods, behavior, and relationships.

Negative Emotional Reactions

Refers to undesirable feelings or emotions that result from certain experiences or thoughts.