Which of the Following Is an Example of Discretionary Fiscal

question 163

Multiple Choice

Which of the following is an example of discretionary fiscal policy?

• A)an increase in unemployment insurance payments during a recession
• B)an increase in income tax receipts with rising income during an expansion
• C)the tax cuts passed by Congress in 2001 to combat the recession
• D)a decrease in food stamps issued during an expansion or boom

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Definitions:

Demand Curve

A graphical representation of the relationship between the price of a good and the quantity of that good that consumers are willing to purchase.

Product Supply Curve

A graphical representation showing the relationship between the price of a product and the quantity of the product that a supplier is willing and able to supply.

Production Technology

The methods, equipment, and processes used to produce goods or services, influencing efficiency and output quality.

Demand Curve

A graph depicting the relationship between the price of a good or service and the quantity demanded for a given period.