Question

Automatic fiscal policy​ ______.

A. reduces the deficit as the economy goes into recession

B. requires an action of the government

C. operates as the economy moves along its business cycle

D. is weak unless the government cuts its outlays to reduce the deficit

Answer 1

C. operates as the economy moves along its business cycle

Step-by-step explanation:

Automatic fiscal policy actions occurs when there is a change in the state of the economy that affects tax revenues or government outlays and does not require an action of the government.

Therefore, Automatic fiscal policy​ operates as the economy moves along its business cycle.