Economists Define Two Components of Fiscal Policy

question 11

Multiple Choice

Economists define two components of fiscal policy:

• A) obligatory fiscal policy and automatic fiscal actions.
• B) discretionary fiscal policy and reflexive fiscal policy.
• C) discretionary fiscal policy and automatic stabilizers.
• D) automatic stabilizers and reflexive fiscal policy.
• E) obligatory and reflexive fiscal policies.

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Definitions:

Social-learning Theory

A theory suggesting that people learn new behaviors through observational learning, imitating the actions of others, especially if those actions are reinforced.

Operant Conditioning

A method of learning that occurs through rewards and punishments for behavior, part of behavioral psychology.

Classical Conditioning

A method of associative learning in which two stimuli are repeatedly correlated; eventually, the response initially due to the second stimulus is provoked by the first stimulus alone.

Self-efficacy

An individual's belief in their own capability to perform actions effectively and achieve desired outcomes.