An example of a policy of austerity is
A) the Lisbon Strategy.
B) tax cuts.
C) the welfare state.
D) cuts in state spending.
E) sustainable development.

Question

Quizplus · Accepted Answer

A policy of austerity involves reducing government spending, which is reflected in cuts in state spending. The other options are not necessarily policies of austerity. The Lisbon Strategy, for example, was a plan to boost the EU's economic competitiveness. Tax cuts may provide an economic stimulus, rather than an austerity measure, and the welfare state is a system of government support for citizens in need. Sustainable development is a concept related to environmental protection and economic growth, but does not necessarily involve austerity measures. Therefore, the best choice is D.

An Example of a Policy of Austerity Is