An Advantage of Automatic Stabilizers Over Discretionary Fiscal Policy Is

question 20

Multiple Choice

An advantage of automatic stabilizers over discretionary fiscal policy is that

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

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