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Question 4 Question 22 If a government wants to pursue an expansionary fiscal policy, then a tax cut of a certain size will be more expansionary when the: Automatic stabilizers tend to people do not save much. people save a lot. stimulate inflations people do not spend much. Unemployment rate is low O intensify recessions Question 20 O cushion the economy against recessions O stabilize income but destabilize employment All of the following are examples of automatic stabilizers EXCEPT Question 23 1 pts personal income taxes O federal transfer payments During an expansion, _ _income tax revenues would tend to automatically increase a _ ---_ or reduce a O welfare benefits O higher; budget deficit; budget surplus O gross domestic product O higher; budget surplus; budget deficit O lower; budget deficit; budget surplus O lower; budget surplus; budget deficit Question 21 Question 24 1 pts Automatic stabilizers are considered Discretionary fiscal policy is undertaken with the intention of _ the economy by _ _ aggregate demand. O stabilizing; causing movements along O discretionary fiscal policy O destabilizing; shifting O stabilizing; shifting O discretionary monetary policy O stabilizing; not changing O nondiscretionary fiscal policy nondiscretionary monetary policy