An Example of Automatic Fiscal Policy Is

question 25

Multiple Choice

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

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Definitions:

Diffuse Status Characteristics

Information about a person’s abilities that are only obliquely relevant to the group’s task, and derive mainly from large-scale category memberships outside the group.

Groupthink

A psychological phenomenon that occurs within a group of people when the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Consensual Positive Validation

The process through which individuals seek validation and approval for their beliefs or actions from others, typically within a social group that shares similar views.

Fear of Death

A common anxiety that involves dread or apprehension about the prospect of dying or the process of dying.