Question

A major advantage of the built-in or automatic stabilizers is that they.

Answer 1

A major advantage of the built-in or automatic stabilizers is that they require no legislative action by Congress to be made effective.

What are automatic stablizers?

Automatic stabilizers are stabilizers that adjust the economy automatically without the intervention of the congress. An example of an automatic stablizer is taxes.

In an expansion, progressive tax increases the tax paid by citizens and  in a contraction, tax paid is reduced and this increases disposable income.

Here is the complete question:

A major advantage of the built-in or automatic stabilizers is that they:

(a) simultaneously stabilize the economy and reduce the absolute size of the public debt.

(b) automatically produce surpluses during recessions and deficits during inflation.

(c) require no legislative action by Congress to be made effective.

(d) guarantee that the federal budget will be balanced over the course of the business cycle.