Conducting Fiscal Policy So That G = T + β

question 56

Multiple Choice

Conducting fiscal policy so that G = T + β (u - u_n) , where G is government expenditures, T is tax revenue, u is the unemployment rate, u_n is the natural rate of unemployment, and β is a positive number, is an example of a(n) :

• A)active rule.
• B)passive rule.
• C)discretionary policy.
• D)automatic stabilizer.

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Definitions:

Health

The state of complete physical, mental, and social well-being, not merely the absence of disease or infirmity.

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow that organizes human needs into a hierarchical structure, with basic needs at the bottom and self-actualization at the top.

Consistency

The degree to which a substance holds together; uniformity or thickness of a fluid.

Devaluing

Reducing or underestimating the importance, value, or worth of something or someone.