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Discretionary (Deliberate)changes in Fiscal Policy Attempt to _________ the Process

question 38

Multiple Choice

Discretionary (deliberate) changes in fiscal policy attempt to _________ the process of closing a recessionary or an expansionary gap,while employment insurance payments and social assistance payments,acting as automatic stabilizers,tend to reduce economic fluctuations because they automatically ________ during a recessionary gap and ________ during an expansionary gap.


Definitions:

Unit and Dollars

Refers to the measure of financial and physical quantities in terms of units (number of items) and their monetary value in dollars.

Monthly Net Operating Income

Net operating income calculated on a monthly basis, indicating the profitability of business operations within that month.

Fixed Expenses

Costs that do not change with the level of production or sales, such as rent and salaries, remaining constant over a period.

Monthly Advertising Budget

A planned amount of money dedicated to promoting a company's products or services for a month.

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