A deliberate change in the government's deficit
A) constitutes discretionary fiscal policy.
B) leads to automatic stabilization.
C) acts as a drag on the economy.
D) is implemented by the Fed.
A
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Suppose there is a tradeable goods market (such as products like textiles that can be shipped across markets) and a non-tradable goods market (such as services like hair cuts). Can outsourcing impact wages in the non-tradable market?
What will be an ideal response?
Which of the following is not a typical goal of bureaucrats?
a. increasing the size of their bureaus b. gaining prestige c. increasing the size of their staffs d. increasing their bureaus' budgets e. achieving greater efficiency
Expansionary fiscal policy consists of:
a. increasing government spending. b. increasing payroll taxes to finance health care. c. decreasing government spending. d. raising the minimum wage.
Transfer payments
A. fall during recessionary periods. B. buffer aggregate demand during downturns because disposable income and hence, consumption, do not fall as fast as GDP. C. are exclusively a discretionary stabilizer. D. are progressive and prevent income from rising as fast as output.