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he government possesses the tools necessary to influence the output level in the short run through use of monetary and fiscal policy. however, there is some debate regarding whether the government should attempt to stabilize the economy. which of the following statements regarding the debate over stabilization policy are correct? check all that apply. opponents of active stabilization policy believe that significant time lags in both fiscal and monetary policy often exacerbate economic fluctuations. opponents of active stabilization believe that active fiscal and monetary policies have no effect on aggregate demand. advocates of active stabilization believe that automatic stabilizers have no effect on aggregate demand. advocates of active stabilization believe that implementation lags for fiscal and monetary policy do not exist. which of the following policies are examples of automatic stabilizers? check all that apply. corporate income taxes the discount rate personal income taxes

Respuesta :

The government can alter its monetary and fiscal policies, according to proponents of active stabilization policy, to offset waves of exaggerated optimism and pessimism among consumers and enterprises.

Define automatic stabilizers.

In macroeconomics, automatic stabilisers are components of the construction of modern government budgets, particularly income taxation and welfare spending, which strive to reduce volatility in real GDP. The Corporation Tax Code, Transfer Rules, and Income Tax Code are the three automatic stabilisers.

Central banks must carry out monetary policy in order to accomplish macroeconomic policy objectives such as price stability, full employment, and consistent economic growth. Fiscal policy is the term used to describe the federal government's tax and spending plans.

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