Which of the Following Statements About the Structural Surplus or Cyclically

question 12

Multiple Choice

Which of the following statements about the structural surplus or cyclically adjusted surplus is true?

• A)An expansionary fiscal policy lowers the structural surplus.
• B)An increase in tax rates raises the structural surplus.
• C)A contractionary fiscal policy raises the structural surplus.
• D)A and C

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Definitions:

National Industrial Recovery Act

A law enacted in 1933 in the United States to authorize the President to regulate industry in an attempt to raise prices after severe deflation and stimulate economic recovery.

NLRB v. Jones and Laughlin Steel Corporation

A landmark 1937 United States Supreme Court case that upheld the constitutionality of the National Labor Relations Act, affirming the national government's power to regulate labor relations.

Federal Mediation and Conciliation Service

A U.S. government agency that provides mediation and conciliation services to facilitate the resolution of labor disputes between unions and employers.

Voluntary Mediation

A process where parties in dispute agree to seek a resolution with the help of a neutral third-party mediator without the involvement of a court.