Answered: A key feature of all automatic…

A key feature of all automatic stabilizers is that they 1. require new legislation 2. are aimed at expanding the economy 3. involve existing legislation 4. involve transfer payments which one and why

Macroeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506756

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter11: Fiscal Policy: The Keynesian View And Historical Development Of Macroeconomics

Section: Chapter Questions

Problem 8CQ

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Question

A key feature of all automatic stabilizers is that they

1. require new legislation

2. are aimed at expanding the economy

3. involve existing legislation

4. involve transfer payments

which one and why

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