Subject - Economics:

Macroeconomics

MCQ - 169-4179

Question:

Which of the following is true of automatic fiscal policy stabilizers?

For a given level of government spending, they produce a deficit during a recession and a surplus during an expansion.
They serve to prolong recessionary and inflationary periods.
The regressive tax system is a fundamental component of automatic stabilizers.
They serve to prolong recessionary and inflationary periods.
They lengthen the business cycle.

Correct Answer: A

Explanation:

This choice describes exactly what automatic stabilizers do. By providing automatic fiscal stimulus during a recession, they also lessen the impact of a recession by shortening the business cycle.

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269 MCQ for effective preparation of the test of Macroeconomics of Economics section.

Read the MCQ statement: Which of the following is true of automatic fiscal policy stabilizers? , keenly and apply the method you have learn through the video lessons for Macroeconomics to give the answer. Record your answer and check its correct answer and video explanation for MCQ No. 169-4179.

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