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:

Group Member Input

Contributions or feedback provided by individuals within a group, pivotal for collaborative decision-making and shared understanding.

Promises

Commitments or assurances given by a person or organization to do something or to behave in a certain way.

Corporate Social Responsibility

The practice of companies taking responsibility for the impact of their activities on customers, employees, communities, and the environment, often going beyond legal requirements.

Governmental Oversight

The monitoring, regulation, and examination of actions, decisions, or policies of government agencies or officials by higher authorities or bodies.