A Major Advantage of Automatic Stabilizers Is That They

question 60

Multiple Choice

A major advantage of automatic stabilizers is that they:

• A)​guarantee that the federal budget will be balanced over the course of the business cycle.
• B)​require no legislative action by Congress to take effect.
• C)​simultaneously stabilize the economy and reduce the size of the public debt.
• D)​automatically produce surpluses during recessions and deficits during economic booms.

---

Definitions:

Doll Houses

Miniature houses designed for children to play with, often replicating the structure and furnishings of a full-size house.

Labor Cost

The total expenditures for wages, benefits, and payroll taxes that employers incur in compensation for the work performed by their employees.

Derived Demand

The demand for a resource; it stems from the demand for the final good the resource helps produce.

Input Demand

The requirement for resources and materials necessary to produce goods and services.