An example of automatic fiscal policy is
A) the unemployed automatically become eligible for unemployment benefits when they lose their jobs in a recession.
B) when interest rates automatically fall in a recession.
C) Congress passes a law during a recession that automatically extends unemployment benefits for those whose benefits will soon expire.
D) a and b
E) a,b and c
Correct Answer:
Verified
Q35: When the economy is in a recessionary
Q36: Suppose aggregate demand is too low to
Q37: A budget deficit
A) occurs when government expenditures
Q38: Suppose Congress increases income taxes.This is an
Q39: A balanced budget occurs when
A) the national
Q41: The AD curve shifts to the right
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents