All of the Following Are Variables That Can Be Manipulated

question 42

Multiple Choice

All of the following are variables that can be manipulated to affect fiscal policy except one.Which is the exception?

• A)Personal income taxes
• B)Government expenditures on goods and services
• C)Government expenditures on unemployment benefits
• D)The federal funds rate
• E)Corporate income taxes

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Definitions:

Automatic Stabilizers

Financial strategies and initiatives, including taxation and unemployment insurance, that inherently adapt to mitigate economic variations without the need for further action by the government.

Aggregate Output

The total value of all goods and services produced in an economy within a given period of time.

Tax Revenue

The government's income from taxes imposed on individuals, businesses, and other legal entities.

Unspecified Government Spending

Government expenditures not clearly allocated or detailed for specific purposes in official documents.