One advantage of automatic stabilizers over discretionary fiscal policy is that automatic stabilizers do not produce a cyclical deficit as discretionary fiscal policy does. have a greater multiplier effect than discretionary fiscal policy. make the actual budget a better reflection of the condition of the economy than the standardized budget. are not subject to the timing problems of discretionary fiscal policy

Question

Business

Gordon Dixon

3 January, 16:24

One advantage of automatic stabilizers over discretionary fiscal policy is that automatic stabilizers do not produce a cyclical deficit as discretionary fiscal policy does. have a greater multiplier effect than discretionary fiscal policy. make the actual budget a better reflection of the condition of the economy than the standardized budget. are not subject to the timing problems of discretionary fiscal policy

+5

Answers (1)

Know the Answer?

Nathalia Moon · Answer 1

The best answer for this statement would be:

are not subject to the timing problems of discretionary fiscal policy

There is a fact that automatic stabilizers increase the chance of depleting the budget deficits, even in times of recessions. While discretionary fiscal policy is more of identifying the lags to enact the change in fiscal policy.