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

---

Definitions:

Exponent

In mathematics, a number indicating how many times a base is to be multiplied by itself.

Binomial

A polynomial expression that contains exactly two terms, typically written in the form a+b.

Simplify

To make an expression less complex by combining like terms and executing arithmetic operations where possible.

Fraction

A numerical quantity that represents a part of a whole, typically in the form of a numerator divided by a denominator.