The major advantage of automatic stabilizers is that they guarantee the federal budget will be balanced in a relatively short amount of time. institute countercyclical fiscal policy without the delays associated with legislative action. automatically produce surpluses during recessions and deficits during expansions. require discretionary actions on the part of Congress before they exert an impact on output and employment.

Question

Maren Terry

Business

29 May, 07:31

The major advantage of automatic stabilizers is that they guarantee the federal budget will be balanced in a relatively short amount of time. institute countercyclical fiscal policy without the delays associated with legislative action. automatically produce surpluses during recessions and deficits during expansions. require discretionary actions on the part of Congress before they exert an impact on output and employment.

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Natasha Palmer · Answer 1

institute counter cyclical fiscal policy without the delays associated with legislative action.

Explanation:

In economics, automatic stabilizers refers to fiscal policies designed to act counter cyclically in order to offset economic fluctuations resulting from economic downturns (recessions). They are basically taxes and government transfers that do not need to be authorized by the government, e. g. unemployment compensation, food stamps, etc.