Question

A major advantage of automatic stabilizers in fiscal policy is that they

Answer 1

Answer:

option d ==> go into effect without passage of new legislation.

Explanation:

In order to be able to answer this question correctly let us check out the meaning of some important terms in the question (that is the fiscal policy and automatic stabilizers);

(1). Fiscal policy: fiscal policy is the method used by governments in order to make the economy of a state or country stable by making sure they control the way the government go about the policies concerning taxation and how Governments are going to be spending which help in fighting recession.

(2). Automatic stabilizers: automatic stabilizers are stabilizers that are part of the budget and they are solely for decreasing the amount or rate of taxes especially during recession.

==> Automatic stabilizers in fiscal policy do not need new law or legislation to be passed or would there be a need for the congress to vote for it to take effect.

Answer 2

Answer:

Automatic stabilizers are a type of fiscal policy developed to counterbalance fluctuations in a nation's economic pursuit via normal operation without extra, timely permission by the government or policymakers. The major advantage of automatic stabilizers is that it require no legislative action by Parliament to be made effective. Automatic stabilizers are so called because they act to stabilize economic cycles and are automatically triggered without additional government action. They automatically regulate tax rates and transfer payments with the aim to stabilize incomes, consumption, and business spending over the business cycle.

Explanation: