Which of the following statements is correct?
A)Built-in stability only partially offsets fluctuations in economic activity.
B)Built-in stability works in halting inflation, but it cannot alleviate unemployment.
C)Built-in stability can be relied on to eliminate completely any fluctuation in economic activity.
D)Built-in stability has eliminated the need for discretionary fiscal policy.

Question

Quizplus · Accepted Answer

Built-in stability, such as automatic stabilizers like taxes and unemployment benefits, helps to moderate economic fluctuations but does not completely eliminate them.

Which of the Following Statements Is Correct