All of the Following Are Automatic Fiscal Stabilizers EXCEPT

question 198

Multiple Choice

All of the following are automatic fiscal stabilizers EXCEPT

• A) a congressionally mandated decrease in tax rates to stimulate the economy.
• B) a decrease in unemployment compensation payments during an expansion.
• C) a decrease in overall tax revenues during a recession.
• D) an increase in unemployment expenditures during a recession.

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Definitions:

Equal Distribution

The concept of distributing resources or income in a way that every member of a society gets an equal share.

Marginal Cost

The expense incurred from the manufacture of an extra single unit of a product or service.

Opportunity Cost

The expense incurred from not choosing the second-best option available during decision-making.

Marginal Cost

The swell in aggregate expenditure due to the production of an additional unit of a product or service.