Which of the Following Is an Advantage of Automatic Stabilizers

question 126

Multiple Choice

Which of the following is an advantage of automatic stabilizers?

• A)The lag for automatic stabilizers is relatively short.
• B)It is much easier to measure the impact of automatic stabilizers compared to the impact of discretionary fiscal policy.
• C)There is virtually 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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Definitions:

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Conceptual Skills

The ability to understand complex ideas, identify patterns, and solve problems abstractly, critical for strategic planning and decision making.

Break Down Problems

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