Which of the Following Is an Example of Automatic Fiscal

question 132

Multiple Choice

Which of the following is an example of automatic fiscal policy?

• A) The government deliberately raises taxes.
• B) The government deliberately lowers taxes.
• C) The government deliberately increases spending.
• D) The government deliberately decreases spending.
• E) none of the above

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Definitions:

Directly Tipped Employee

An employee who receives tips directly from customers for services rendered, often subject to different tax reporting requirements.

Form 8027

A tax form used by employers who operate large food or beverage establishments to report tips received by employees.

FICA Tax

Federal Insurance Contributions Act tax, a payroll tax deducted from employees' wages for Social Security and Medicare benefits.

Employer

An individual or business entity that hires and pays wages or salaries to one or more employees in exchange for their work.