Which of the Following Is an Advantage of Automatic Stabilizers?
Which of the following is an advantage of automatic stabilizers?
A) The lag for automatic stabilizers is relatively long.
B) It is much easier to measure the impact of automatic stabilizers compared to the impact of discretionary fiscal policy.
C) There is no administrative cost to implementing automatic stabilizers.
D) Because they affect disposable personal income directly, automatic stabilizers act swiftly to reduce the degree of changes in real GDP.
A) increase the problems that lags cause in using fiscal policy as a stabilization tool.
B) are changes in taxes or government spending that increase aggregate demand without requiring policymakers to act when the economy goes into recession.
C) are changes in taxes or government spending that policymakers agree to when the economy goes into recession.
D) are part of discretionary fiscal policy.
Discretionary fiscal policy refers to
A) deliberate government efforts to stabilize the economy through government spending and taxes.
B) the use of automatic stabilizers and intervention policies to stabilize the economy.
C) any government policy that requires a lag period of at least three months.
D) the deliberate use of government spending and taxes to complement the effects of monetary policy in an effort to stabilize the economy.
Which of the following describes a discretionary fiscal policy action/program?
A) the progressive income tax system
B) The government increases funding for the Dislocated Worker Program, a federal initiative that provides retraining and career counseling.
C) the unemployment compensation program
D) the system of welfare programs