An Advantage of Automatic Stabilizers Over Discretionary Fiscal Policy Is

question 204

Multiple Choice

An advantage of automatic stabilizers over discretionary fiscal policy is that

• A)automatic stabilizers are not subject to the same time lags as discretionary fiscal policy.
• B)automatic stabilizers can be easily fine-tuned to move the economy to full employment.
• C)only the President is involved in implementing automatic stabilizers, instead of both the President and Congress.
• D)the Ricardian equivalence theorem applies more readily to automatic stabilizers than to discretionary fiscal policy.

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Definitions:

Political Systems

The framework by which a society organizes and administers public policy and governance, including democracy, monarchy, and dictatorship.

Uncentralized Political System

A political structure where power is distributed among various groups or units instead of centralized authority.

Social Organization

The structured patterns of relationships and roles that arise in any society, dictating how individuals and groups interact.

Kinship

A network of relatives into which individuals are born and married, and with whom they cooperate based on customarily prescribed rights and obligations.