Which of the following is an example of automatic fiscal policy?
A) The government deliberately raises taxes.
B) The government deliberately lowers taxes.
C) The government deliberately increases spending.
D) The government deliberately decreases spending.
E) none of the above

Question

Quizplus · Accepted Answer

Automatic fiscal policy refers to the changes in government spending or taxes that occur automatically without any deliberate action by the government. None of the options listed are examples of automatic fiscal policy, as they all involve deliberate actions by the government. Examples of automatic fiscal policy include changes in tax revenues and government spending that occur because of fluctuations in the economy, such as changes in employment or inflation rates.

Which of the Following Is an Example of Automatic Fiscal