An Example of Fiscal Stimulus Policy Is

question 179

Multiple Choice

An example of fiscal stimulus policy is

• A) the automatic increase in needs-tested spending during a recession.
• B) induced taxes.
• C) decreasing government expenditure.
• D) decreasing needs-tested spending.
• E) cutting taxes.

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Definitions:

Total Surplus

The total net gain to society from creating and consuming goods and services, encapsulated by the combination of consumer and producer surplus.

Total Surplus

The sum of producer and consumer surplus, representing the total net benefit to society from the production and consumption of goods and services.

Equilibrium

A state where supply equals demand, and the market is at rest.

Producer Surplus

The difference between the amount that producers receive from the sale of a good or service and the minimum amount they would accept.