Which of the following is an example of active fiscal policy? a.Government expenditures rise during a recession because unemployment insurance benefits increase. b.The government runs a budget deficit during a recession because income tax collections fall. c.Congress passes a tax cut after the beginning of a recession with the aim of stimulating the economy. d.All of the above e.None of the above
Which of the following is an example of active fiscal policy? a.Government expenditures rise during a recession because unemployment insurance benefits increase. b.The government runs a budget deficit during a recession because income tax collections fall. c.Congress passes a tax cut after the beginning of a recession with the aim of stimulating the economy. d.All of the above e.None of the above
Chapter15: Fiscal Policy
Section: Chapter Questions
Problem 1SQ
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Which of the following is an example of active fiscal policy?
a.Government expenditures rise during a recession because
b.The government runs a budget deficit during a recession because income tax collections fall.
c.Congress passes a tax cut after the beginning of a recession with the aim of stimulating the economy.
d.All of the above
e.None of the above
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