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:

Place Theory

A theory explaining how the inner ear registers the frequency of sounds, based on the location along the cochlea’s basilar membrane that sound waves peak.

Cones

Visual receptors that respond to greater light intensities and give rise to chromatic (color) sensations.

Visual Sensations

The experience derived from light stimulating the visual receptors in the eyes, leading to visual perception.

Frequency

The number of occurrences of a repeating event per unit of time, often applied to waves or vibrations.