Automatic stabilizers
A) make sure that the government budget is balanced every year.
B) give Congress the complete authority for determining fiscal policy.
C) are under the control of the Council of Economic Advisers.
D) force Congress to expedite budget hearings during times of economic hardship.
E) come into play without the need for new legislation or administrative decisions.

Question

Quizplus · Accepted Answer

Automatic stabilizers are built-in features of the economy that automatically help to stabilize economic fluctuations without the need for new legislation or administrative decisions. These stabilizers include things like progressive income taxes, unemployment benefits, and corporate profit taxes that automatically decrease during a recession and increase during an expansion.

Automatic Stabilizers