Built-in stabilizers: 
A. Intensify the business cycle
B. Reduce the size of the multiplier
C. Increase the government's deficit during a recession
D. Are a part of discretionary fiscal policy

Respuesta :

Answer: OPTION A

Explanation: Built in stabilizers are a part of non discretionary fiscal policy.

In simple words, built in stabilizers are those elements in fiscal policy that automatically fixes the economy and intensifies the business cycle in times of distress. These elements are not implemented by the Govt. Personal income taxes and unemployment insurance are two of many examples of built in stabilizers.

   

Thus, from the above we can conclude that option A is correct.

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