Which of the Following Is an Example of Active Fiscal

question 83

Multiple Choice

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

• A)Income tax revenues rise in an inflationary period.
• B)Income tax revenues fall in a recession.
• C)Congress passes a major tax increase in an inflationary period.
• D)Unemployment benefits increase in a recession.

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Definitions:

Free Will

The concept that human beings have the power to make choices that are not determined by natural or divine forces.

Self-Actualization

The realization or fulfillment of one's talents and potentialities, considered as a drive or need present in everyone.

Esteem Needs

According to Maslow's hierarchy of needs, these are the needs for self-esteem, strength, competence, mastery, self-confidence, independence, and freedom.

Higher Needs

Refers to the more advanced stages in Maslow's hierarchy of needs, including esteem and self-actualization needs, beyond basic physiological and safety needs.