An Example of an Automatic Fiscal Policy Stabilizer Is When

question 284

Multiple Choice

An example of an automatic fiscal policy stabilizer is when

• A) the president drafts a bill to reduce defense spending.
• B) tax revenues decrease as real GDP decreases.
• C) Congress passes a law that raises tax rates.
• D) Congress decides to cut government expenditure.

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Definitions:

Desired Performance

The expected or targeted level of output or outcome that an organization or individual aims to achieve.

Actual Performance

The real, observed output or results of an individual's or organization's work, as opposed to expected or theoretical outcomes.

Managerial Attention

The focus and prioritization that managers give to specific issues, projects, or tasks.

Management By Exception

A leadership strategy where managers intervene only when performance deviates significantly from standards, allowing for more autonomous operation otherwise.