Automatic fiscal policy occurs
A) because monetary policy is effective.
B) when the Parliament makes changes to transfer payment programmes.
C) because tax revenues and transfer payments fluctuate with real GDP.
D) because government expenditures on goods and services fluctuate with real GDP.
Correct Answer:
Verified
Q1: Fiscal policy involves
A)decreasing the role of the
Q2: If taxes exactly equalled government outlays the
A)government
Q3: The actual budget deficit is equal to
Q5: The sum of past budget deficits minus
Q6: A fiscal action that is triggered by
Q7: An increase in government expenditure shifts the
Q8: A budget surplus occurs when government
A)outlays exceed
Q9: A discretionary fiscal policy is a fiscal
Q10: A government that currently has a budget
Q11: In the short run, an increase in
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