QUESTION 5 0.5 points Save Answer An example of an automatic stabilizer is: reduced unemployment rates during a boom means more people working, and the government pays less out in food assistance. increased tax revenues due to average incomes going up during a boom. increased unemployment rates cause the government to pay out more in unemployment insurance. )All of these are examples of automatic stabilizers. QUESTION 6 0.5 points Save Answer A budget surplus is: O the amount of net revenue a government brings in beyond what it spends. O the total amount of money that a government is owed. the amount of money a government spends beyond the net revenue it brings in. O the total amount of money that a government owes. QUESTION 7 0.5 points Save Answer Discretionary fiscal policy is: O fiscal policy that the government enacts only for a short period of time. fiscal policy that the government actively chooses to adopt. taxes and government spending that the government actively votes against adoption. taxes and government spending that affect fiscal policy without specific action from policymakers. QUESTION 8 0.5 points Save Answer During a recession, government deficits can grow because: income tax revenues tend to decrease because people are earning less. sales tax revenues tend to decrease because people are spending less. government spending often increases as part of an expansionary fiscal policy. All of these are true.QUESTION 1 0.5 points Save Answer Fiscal policy is: O the decisions that affect the available money supply in the economy. government decisions about the level of the interest rate in the economy. DO congressional budget office decisions. government decisions about the level of taxation and public spending. QUESTION 2 0.5 points Save Answer A budget deficit is: O the amount of net revenue a government brings in beyond what it spends. the total amount of money that a government is owed. OO the amount of money a government spends beyond the net revenue it brings in. the total amount of money that a government owes. QUESTION 3 0.5 points Save Answer Fiscal policy can: O have real effects on the economy in the short run. cause inflation. OO bring the economy to its long run equilibrium faster than it can correct itself. All of these are true. QUESTION 4 0.5 points Save Answer An example of fiscal policy would be government: increasing the amount of available educational grants. increasing corporate income taxes. decreasing the income tax. All of these are examples of fiscal policy.QUESTION 9 0.5 points Save Answer During a severe recession, the government decides to lower its tax rates to give consumers relief, and allow them to pay less in taxes. This is an example of: O an automatic stabilizer. discretionary fiscal policy. contractionary fiscal policy. None of these is true. QUESTION 10 0.5 points Save Answer If the government decreases the income tax rate, then: O aggregate demand will shift right. GDP will decrease. aggregate demand will shift left. None of these will happen when the income tax rate decreases. QUESTION 11 0.5 points Save Answer If the government decreases the income tax rate, they assume it will affect which component of GDP? O Net export Consumption Government spending A change to the income tax rate will not affect any of these components. QUESTION 12 0.5 points Save Answer Increased government spending is an example of: expansionary fiscal policy. DO expansionary monetary policy. contractionary monetary policy. contractionary fiscal policy