An automatic stabiliser is:
A) a fiscal policy that aims to smooth out the business cycle
B) a monetary policy that aims to smooth out the business cycle
C) a tax or form of government expenditure that has the effect of reducing the size of the multiplier
D) the tendency for inflation to fall as unemployment rises
Correct Answer:
Verified
Q28: The effectiveness of fiscal policy as a
Q29: Which of the following would be considered
Q30: Fiscal stance refers to:
A) whether a government
Q31: Deliberate changes in tax rates and levels
Q32: Which of the following is an example
Q34: Which of the following is NOT an
Q35: If the RBA sells government bonds, the
Q36: Discretionary fiscal policy is when:
A) existing taxation
Q37: In the management of the Australian economy:
A)
Q38: Which of the following will NOT necessarily
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