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:

Silence

The absence of sound or the act of refraining from speaking; in legal contexts, it can imply consent or acceptance under certain conditions.

Acceptance

In contract law, acceptance refers to the expression of agreement to the terms of an offer, resulting in a contract.

Forbearance To Act

Refers to a legal principle involving the deliberate abstention from enforcing a right.

Contractual Agreement

A legally binding agreement between two or more parties outlining their rights and obligations.