The Distinction Between Discretionary Fiscal Policy and the Use of Automatic

question 145

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.
• E)only discretionary fiscal policy can be used by the federal government.

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Definitions:

Ordinal

Relating to a categorical ranking in which the order of the values is significant, but the difference between them is not uniformly spaced.

Census

A complete enumeration or count of a population at a set point in time, gathering various demographic, social, and economic information.

Survey

A method of gathering data from a sample of individuals to discover information about a larger population.