Discretionary fiscal policy is:
A. fiscal policy that the government actively chooses to adopt.
B. fiscal policy that the government enacts only for a short period of time.
C. taxes and government spending that affect fiscal policy without specific action from policymakers.
D. taxes and government spending that the government actively votes against adoption.
Answer: A
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The standard view in economics is that tax cuts without ________ will ________ the budget deficit resulting in ________
A) increasing spending; decrease; unemployment B) spending cuts; decrease; unemployment C) increasing spending; increase; crowding out investment D) spending cuts; decrease; crowding out investment E) spending cuts; increase; crowding out investment
A Lorenz curve measures
A) the benefits received through welfare programs. B) the actual income distribution and compares it to an equal income distribution. C) the degree to which income taxes are regressive. D) the effect of flat taxes on income distribution.
Of the four groups listed below, the highest unemployment rate is typically experienced by:
a. females as a group. b. males as a group. c. teenagers. d. persons who completed 1-3 years of high school.
Changes in taxes or spending levels that stimulate aggregate demand without the passage of any new laws are called _____
a. expenditure multipliers b. discretionary monetary policies c. discretionary fiscal policies d. automatic stabilizers