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.

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Definitions:

Monitoring

Involves the continual oversight of activities, processes, or systems to ensure they are functioning correctly and achieving desired outcomes.

Business Goals

The objectives that a company aims to achieve, which guide its strategic planning and operational activities.

Compliance

Adherence to laws, regulations, guidelines, and specifications relevant to business operations.

Vulnerabilities

Weaknesses or flaws in a system that can be exploited by threats to gain unauthorized access or cause harm.