Evaluating the status of Blank______ requires adjusting deficits and surpluses to account for automatic changes in tax revenues.

Question

Multiple choice question.

automatic or built-in stabilizers

tax progressivity

monetary policy

fiscal policy

Answer 1

The correct answer is automatic or built-in stabilizers. These are mechanisms that automatically adjust tax revenues and government spending in response to economic changes, helping to stabilize the economy without the need for new legislative action.