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Select all that applyBuilt-in stability constitutes which of the following policies?Multiple select question."Passive" budgetary policy"Automatic" budgetary policyDiscretionary budgetary policyNondiscretionary budgetary policy

Question

Select all that applyBuilt-in stability constitutes which of the following policies?Multiple select question."Passive" budgetary policy"Automatic" budgetary policyDiscretionary budgetary policyNondiscretionary budgetary policy

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Solution

"Passive" budgetary policy and "Automatic" budgetary policy are both considered as part of built-in stability. These policies are designed to automatically stimulate or slow down the economy when needed, without any additional intervention from the government.

On the other hand, Discretionary budgetary policy and Nondiscretionary budgetary policy are not part of built-in stability. These policies require active intervention from the government to adjust the economy.

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