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

question 111

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 discretionary budgetary policy.
• D)guarantee that the federal budget will be balanced over the course of the business cycle.

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Definitions:

Policymaking Process

The methodical series of steps taken by governmental bodies to develop, implement, and evaluate public policies.

Policy Effectiveness

The measure of the extent to which public policies achieve their intended outcomes and objectives.

Policymaking Process

The method by which governments create policies to address public issues, involving problem identification, policy formulation, adoption, implementation, and evaluation.

Affordable Care Act

A health care reform law enacted in March 2010, aimed at expanding insurance coverage, controlling health care costs, and improving the health care delivery system in the United States.