An Example of Automatic Fiscal Policy Is When

question 144

Multiple Choice

An example of automatic fiscal policy is when

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

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Definitions:

Cognitive Functioning

Cognitive functioning refers to the mental processes involved in gaining knowledge and comprehension, including thinking, knowing, remembering, judging, and problem-solving.

Physical Health

concerns the functional and metabolic efficiency of an individual's body, reflecting the absence of disease and the state of physical well-being.

Metamemory

An individual's knowledge about their own memory capabilities and strategies, including the ability to understand and monitor memory processes.

Mental Processing Speed

Refers to the time it takes a person to do a mental task, related to the speed of perceiving and responding to stimuli.