37) One characteristic of built-in or automatic stabilizers is that 37) A) they

Question

37) One characteristic of built-in or automatic stabilizers is that 37) A) they reduce the size of the public debt during times of recession. B) they require no new legislative action by Congress to have an effect. C) they D) they have no effect on the distribution of income. automatically produce surpluses during recessions and deficits during inflation. 38) 38) When government spending exceeds government revenues during a given period of time A) a budget surplus exists C) the national debt must be decreasing. B) Congress is obliged to raise taxes D) a budget deficit exists.

Explanation / Answer

Ans)

37)

B) they require no legislative action by Congress to be made effective.

Automatic stabilizers are economic policies which require no government intervention to be implemented and are designed to stabilize the economy.

38)

A) a budget surplus exists

A deficit is when the government spending exceeds the government revenues.

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