Briefly explain whether each of the following is an example of:
(1) a discretionary fiscal policy,
(2) an automatic stabilizer,
(3) not a fiscal policy.
the federal government increases spending on rebuilding the new jersey shore following a hurricane. this is an example of:
a. a discretionary fiscal policy.
b. an automatic stabilizer.
c. not a fiscal policy.
the federal reserve sells treasury securities. this is an example of:
a. not a fiscal policy.
b. a discretionary fiscal policy.
c. an automatic stabilizer.
the total the federal government pays out for unemployment insurance decreases during an expansion. this is an example of:
a. an automatic stabilizer.
b. a discretionary fiscal policy.
c. not a fiscal policy.
the revenue the federal government collects from the individual income tax declines during a recession. this is an example of:
a. a discretionary fiscal policy.
b. not a fiscal policy.
c. an automatic stabilizer.
the federal government changes the required gasoline mileage for new cars. this is an example of:
a. not a fiscal policy.
b. an automatic stabilizer.
c. a discretionary fiscal policy.
congress and the president enact a temporary cut in payroll taxes. this is an example of:
a. a discretionary fiscal policy.
b. not a fiscal policy.
c. an automatic stabilizer.