Provisions that cause changes in government spending and taxes that do NOT require action of the President or Congress are called
A. discretionary fiscal policy.
B. private stabilization effects.
C. automatic stabilizers.
D. discretionary stabilizers.
Answer: C
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A peak is the
A) lower turning point of a business cycle when an expansion ends. B) lower turning point of a business cycle when a recession ends. C) upper turning point of a business cycle when an expansion ends. D) upper turning point of a business cycle when a recession ends.
If the economy in the graph shown is currently at point B, and the government increases its spending, the likely outcome will be that the:
A. economy will increase its level of output.
B. economy will experience deflation.
C. economy's unemployment rate will increase.
D. All of these are likely to be true.
Buyers and sellers of a particular good make up the:
A. market for the good. B. demand for the good. C. production possibilities curve for the good. D. supply for the good.
The government receives all of the benefits associated with the production of a public good.
Answer the following statement true (T) or false (F)