The Major Advantage of Automatic Stabilizers Is That They

question 53

Multiple Choice

The major advantage of automatic stabilizers is that they

• A) guarantee the federal budget will be balanced in a relatively short amount of time.
• B) institute countercyclical fiscal policy without the delays associated with legislative action.
• C) automatically produce surpluses during recessions and deficits during expansions.
• D) require discretionary actions on the part of Congress before they exert an impact on output and employment.

Differentiate between bipolar I and bipolar II disorders in terms of their symptoms and severity.

Understand the concept of natural monopoly and the operational strategies such as profit maximization where MR = MC.

Comprehend the relationship between demand elasticity and monopolistic production decisions.

Analyze the impact of marginal cost and demand on a monopolist's pricing and output decisions.