Active Changes in Tax and Spending by Government Intended to Smooth

question 105

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

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Definitions:

Latham Loop

A mechanism in a film projector that loosens the film to prevent it from breaking due to tension.

Motion Picture Patents Company

An early 20th-century trust made up of the major American film companies that aimed to control the film industry through patents and legal actions.

Multi-Reel Films

Refers to movies composed of more than one reel, allowing for longer and more complex storytelling in cinema.

Monopolistic Trust

A large business entity made up of a combination of companies, which holds exclusive control over a particular market or sector, limiting competition.