QUESTION 4

Examples of automatic stabilizers within the economy include which of the following? (Select all that apply.)

1. Social security payments to retirees
2. Unemployment benefits for laid off workers
3. Food stamps for low-income families
4. Progressive income taxes.

QUESTION 5

During contractions, automatic stabilizers are designed to moderate the decrease in spending. Which of the following best describes automatic fiscal policy during a contraction?

1. government outlays and tax revenues fall
2. government outlays rise and tac revenues fall
3. government outlays and tax revenues rise
4. government outlays fall and tax revenues rise.

QUESTION 6

Who sets fiscal policy?

1. the u.s. treasurey and the federal reserves
2. the u.s. treasury and the u.s. congress
3. congress and the federal reserves
4. congress and the president