Question

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

fiscal policy

monetary policy

tax progressivity

automatic or built-in stabilizers

Answer 1

The correct answer is **automatic or built-in stabilizers**. These refer to mechanisms in the economy that naturally adjust tax revenues and government spending in response to economic changes, helping to moderate fluctuations in economic activity.