An example of a procyclical fiscal policy is:
A) an income tax.
B) unemployment compensation.
C) a balanced budget policy.
D) welfare payments.
Correct Answer:
Verified
Q71: As the economy contracts, tax revenues:
A)fall and
Q72: Generally speaking, the government implements fiscal policy
Q73: The crowding out effect would be lower
Q74: Because automatic stabilizers lower transfer payments and
Q75: Procyclical fiscal policies:
A)reduce cyclical fluctuations in the
Q77: In terms of fiscal policy, which of
Q78: If output is falling, a procyclical fiscal
Q79: As the economy expands, tax revenues:
A)fall and
Q80: Automatic stabilizers cause:
A)deeper recessions and more rapid
Q81: As income increases during the recovery from
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