Automatic Fiscal Policy Is at Work If, as Real GDP

question 10

Multiple Choice

Automatic fiscal policy is at work if, as real GDP increases, .

• A)tax revenues increase and transfer payments decrease
• B)transfer payments increase and tax revenues decrease
• C)tax revenues decrease and interest rates increase
• D)transfer payments decrease and interest rates decrease

---

Definitions:

Coral Bleaching

occurs when corals lose their vibrant colors due to stress factors such as increased temperatures, leading to a weakened state with reduced growth and reproductive ability.

Zooxanthellae

A type of microscopic algae living symbiotically within the cells of coral and other marine organisms, providing them with energy through photosynthesis.

Euphotic Zone

The upper layer of a body of water, such as an ocean or lake, that is illuminated by sunlight and supports photosynthesis.

Zooplankton

Small floating or weakly swimming organisms that are a component of the aquatic food web.