Solved

Which of the Following Statements Is Correct

Question 102

Multiple Choice

Which of the following statements is correct?


A) Built-in stability only partially offsets fluctuations in economic activity.
B) Built-in stability works in halting inflation, but it cannot alleviate unemployment.
C) Built-in stability can be relied on to eliminate completely any fluctuation in economic activity.
D) Built-in stability overcorrects for fluctuations in economic activity; for example, it may change a small expansion into a recession.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions