Which of the following is an advantage of automatic stabilizers?
A) The lag for automatic stabilizers is relatively long.
B) It is much easier to measure the impact of automatic stabilizers compared to the impact of
discretionary fiscal policy.
C) There is no administrative cost to implementing automatic stabilizers.
D) Because they affect disposable personal income directly, automatic stabilizers act swiftly to reduce the degree of changes in real GDP.
Answer: D) Because they affect disposable personal income directly, automatic stabilizers act swiftly to reduce the degree of changes in real GDP
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