An example of automatic fiscal policy is
A) Parliament passing a tax rate reduction package.
B) the Reserve Bank reducing interest rates as economic growth slows.
C) the Commonwealth government expanding spending at the Department of Education and Training.
D) expenditure for unemployment benefits increasing as economic growth slows.
E) a change in taxes that has no multiplier effect.
Correct Answer:
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Q27: Automatic changes in tax revenues and expenses
Q28: The structural deficit or surplus is the
A)
Q29: If the Commonwealth government cuts taxes by
Q30: Do automatic fiscal stabilisers eliminate business cycles?
A)
Q31: If the budget deficit is $50 billion
Q33: When comparing a $100 billion increase in
Q34: If government expenditure on goods and services
Q35: The structural surplus
A) equals the actual surplus
Q36: Automatic stabilisers include
A) changes in the cash
Q37: Which of the following is true?
A) Automatic
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