Built-in stability refers to mechanisms within a budget that automatically stabilize the economy without the need for active intervention by policymakers. The correct choices that represent built-in stability are:
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"Automatic" budgetary policy - These policies automatically kick in based on economic conditions (e.g., unemployment benefits that increase during a recession).
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Nondiscretionary budgetary policy - This involves policies that are set by law and do not require active decision-making to implement (e.g., tax structures or welfare programs that adjust automatically).
The other options, "Discretionary budgetary policy" and "Passive" budgetary policy, do not reflect built-in stability as they involve active decisions or interventions rather than automatic adjustments.