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

question 47

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 legislative action by Congress to be made effective.
• D) guarantee that the federal budget will be balanced over the course of the business cycle.

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Definitions:

Constructive Way

A manner of approaching situations or problems that is positive, effective, and aimed at building or improving something.

Roadblocks

Obstacles or barriers that hinder progress in achieving a goal or completing a project.

Entrepreneur

A person who organizes, manages, and assumes the risks of a business or enterprise, often innovating and driving economic growth.

Creativity

The ability to generate new ideas, solutions, or artistic expressions, which can lead to novel and valuable outcomes.