Automatic fiscal policy occurs
A) because government expenditures on goods and services fluctuate with real GDP.
B) because tax revenues and transfer payments fluctuate with real GDP.
C) because monetary policy is effective.
D) when the Congress makes changes to transfer payment programs.
Correct Answer:
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Q119: A fiscal action that is triggered by
Q120: Generational accounting shows that the present value
Q121: Spending on programs that result in transfer
Q122: A cyclical surplus is a
A) budget surplus
Q123: Government transfer payments _during expansions and _during
Q125: During an expansion, tax revenues _, while
Q126: Needs-tested spending _during recessions and _during expansions.
A)
Q127: During an expansion, tax revenues _and government
Q128: Because of automatic fiscal policy, when real
Q129: A structural deficit occurs when the government
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