An Advantage of Automatic Stabilizers Over Discretionary Fiscal Policy Is

question 21

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 policymakers are involved in implementing automatic stabilizers.
• D) the Ricardian equivalence theorem applies more readily to automatic stabilizers than to discretionary fiscal policy.

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Definitions:

Semantic Memory

A type of long-term memory involving the recall of general facts and knowledge about the world.

Spatial Orientation

An individual's ability to recognize themselves or objects in relation to environment, direction, and position in space.

Numeric Ability

The capacity to understand, manipulate, and interpret numbers and mathematical concepts.

Warner Schaie

An American psychologist known for his research on adult development and aging, particularly his work on the Seattle Longitudinal Study which investigates cognitive changes across the lifespan.