Because of Automatic Fiscal Policy, When Real GDP Decreases

question 228

Multiple Choice

Because of automatic fiscal policy, when real GDP decreases

• A) government expenditures decrease and tax revenues increase.
• B) government expenditures increase and tax revenues decrease.
• C) government expenditures equal tax revenues.
• D) the economy will automatically go to full employment.

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Definitions:

Victim Mentality

A psychological condition in which a person tends to perceive themselves as a victim of the negative actions of others, leading to a sense of helplessness.

Elitism

Elitism denotes an attitude, practice, or system that favors a perceived superior group or class, especially in matters of privilege, access, and influence, often leading to inequality.

Power of Position

The influence and authority a person possesses as a result of their rank or role within an organization or structure.

Hierarchy

refers to a system or organization in which people or groups are ranked one above the other according to status or authority.