The Distinction Between Discretionary Fiscal Policy and the Use of Automatic

question 145

Multiple Choice

The distinction between discretionary fiscal policy and the use of automatic stabilizers is that:

• A)only discretionary fiscal policy can stimulate the economy.
• B)only automatic stabilizers can stimulate the economy.
• C)discretionary fiscal policy,once adopted,is built into the structure of the economy.
• D)automatic stabilizers,once adopted,are built into the structure of the economy.
• E)only discretionary fiscal policy can be used by the federal government.

---

Definitions:

Debiting

The process of recording an entry on the left side of the accounting ledger, which increases asset or expense accounts and decreases liability, equity, or revenue accounts.

Crediting

The process of making an entry on the right side of an account in double-entry bookkeeping, indicating an increase in liabilities, equity, or revenue, or a decrease in an asset or expense.

Salaries Payable

A liability account representing amounts owed to employees for work performed and not yet paid.

Debit Postings

Entries made on the left side of an account, indicating an increase in assets or expenses or a decrease in liabilities, equity, or revenue.