If the Economy Falls into a Recession, Which of the Following

question 187

Multiple Choice

If the economy falls into a recession, which of the following responses constitutes the use of automatic fiscal policy?

• A) an existing system to make government payments to the growing ranks of unemployed workers
• B) an income tax cut voted on by Congress and quickly signed by the President
• C) a new program to fund local governmentsʹ hiring of 100,000 street sweepers within a year
• D) All of the above answers are correct.

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Definitions:

Interregional Trade

Trade that occurs between different regions within a country or across different countries, involving the exchange of goods and services.

Cincinnati

A city in the state of Ohio, United States, known for its rich history, cultural heritage, and as a major economic and social hub in the Midwest.

St. Louis

A major city in Missouri, United States, known for its significant historical events, cultural contributions, and landmarks such as the Gateway Arch.

Wage Labor

A system of employment where workers are paid a fixed hourly rate or salary for their labor, as opposed to earning profits or owning the means of production.