Government Spending Designed to Mitigate Short-Run Fluctuations Is Called

question 123

Multiple Choice

Government spending designed to mitigate short-run fluctuations is called:

• A) discretionary spending.
• B) fiscal policy.
• C) monetary policy.
• D) automatic stabilization.
• E) unemployment insurance.

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Definitions:

Homeostasis

A state of equilibrium, balance, or lack of conflict.

Implicit

Something suggested or understood without being directly expressed.

Explicit

Clearly expressed or fully detailed, leaving no room for confusion or doubt.

Social Norms

Shared, unstated rules or standards of behavior that are considered acceptable within a group or society.