Active Changes in Tax and Spending by Government Intended to Smooth

question 114

Multiple Choice

Active changes in tax and spending by government intended to smooth out the business cycle are called ________,and changes in taxes and spending that occur passively over the business cycle are called ________.

• A)automatic stabilizers; discretionary fiscal policy
• B)discretionary fiscal policy; automatic stabilizers
• C)automatic stabilizers; monetary policy
• D)discretionary fiscal policy; conscious fiscal policy

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Definitions:

Standard Deviation

A quantification of the extent to which a group of values is varied or dispersed.

Comptroller

An officer or official in an organization who oversees financial and accounting matters, including audits, budgeting, and financial planning.

Sampling Distribution

The distribution of a statistic over many repeated samples drawn from the same population.

Standard Deviation

A tool for measuring the degree to which data points are scattered or spread apart.