An Example of Automatic Fiscal Policy Is

question 84

Multiple Choice

An example of automatic fiscal policy is

• A)Congress passing a tax rate reduction package.
• B)the federal government expanding spending at the Department of Education.
• C)expenditure for unemployment compensation increasing as economic growth slows.
• D)the Federal Reserve reducing interest rates as economic growth slows.
• E)a change in taxes that has no multiplier effect.

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Definitions:

Precondition

A condition that must be met or required before another event or operation can occur.

Initiating Structure

A leadership behavior that focuses on defining roles, tasks, and relationships in the pursuit of goal achievement.

Task Structure

The degree to which job tasks are defined, including clarity, procedures, and goals, influencing how tasks are executed.

Supportive Behaviour

Actions taken to encourage or assist others, contributing to a positive and collaborative environment.