One advantage of automatic fiscal policy over discretionary fiscal policy is that automatic fiscal policy

Question

Multiple Choice
makes the actual budget a better reflection of the condition of the economy than the standardized budget.
does not produce a cyclical deficit, as discretionary policy does.
is not subject to the timing problems of discretionary policy.
has a greater multiplier effect than discretionary policy.

Answer 1

The correct answer is:

is not subject to the timing problems of discretionary policy.

Automatic fiscal policy, such as built-in stabilizers like unemployment benefits and tax brackets, automatically adjusts to economic conditions without the need for new legislation, bypassing the delays associated with discretionary fiscal policy, which requires active decision-making and can face political hurdles.