The Distinction Between Discretionary Fiscal Policy and the Use of Automatic

question 62

Multiple Choice

The distinction between discretionary fiscal policy and the use of automatic stabilizers is that

• A) only discretionary fiscal policy can stimulate the economy.
• B) only automatic stabilizers can stimulate the economy.
• C) discretionary fiscal policy, once adopted, is built into the structure of the economy.
• D) automatic stabilizers, once adopted, are built into the structure of the economy.

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Definitions:

Annapolis Conference

A meeting in Annapolis, Maryland, in 1786 intended to address economic disputes between the States but setting the stage for the Philadelphia Convention for drafting the US Constitution.

National Trade Policy

Governmental regulations and agreements that determine how a country conducts trade with other nations, including tariffs, trade agreements, and import/export regulations.

Shays's Rebellion

A 1786-1787 armed uprising in western Massachusetts led by Daniel Shays, stemming from discontent with high taxes and economic injustices, which highlighted the weaknesses of the Articles of Confederation.

Overthrow Government

The act of removing and replacing a government or its leaders, typically through force or illegal means.