What term is used for the idea that taxes decrease and transfer payments increase automatically in response to a contracting economy?Multiple choice question.An enacted lawAn automatic stabilizerAn automatic injectionAn enacted budget policy

Which of the following is an example of a contractionary fiscal policy?Group of answer choicesincreasing government expenditureincreasing taxesincreasing  transfer payments. decreasing taxes

Which of the following is an example of an automatic stabiliser?The regressive tax systemThe progressive tax systemPensionsThe proportional tax system

What is the term for the idea that the government should guide the economy to full employment by calculated changes to spending and taxation?Multiple choice question.Crowding out policyCyclical fiscal policyCountercyclical fiscal policyMonetary policy

Which of the following is NOT a tool of fiscal policy?Choose one answer from the options below.changing tax ratesgovernment transfersgovernment purchases of goods and serviceschanges in the money supply

Contractionary fiscal policy deals with: Question 32Select one:a.decreasing money supply in the economy and/or increasing interest rates.b.reducing government spending and/or increasing taxes.c.increasing money supply in the economy and/or decreasing interest rates.d.increasing government spending and/or decreasing tax rates.e.increasing government spending and/or decreasing tax rates.