a. A recession occurs, and government-funded unemployment compensation is paid to laid-off workers. This is an example of---
an automatic fiscal stabilizer, a monetary policy or a discretionary fiscal policy.
.
7 answers
This is an example of an automatic fiscal stabilizer.
b. Congress votes to fund a new jobs program designed to put unemployed workers to work. This is an example of
This is an example of a discretionary fiscal policy.
c. The Federal Reserve decides to reduce the quantity of money in circulation in an effort to slow inflation. This is an example of
This is an example of a monetary policy.
d. Under powers authorized by an act of Congress, the president decides to authorize an emergency release of funds for spending programs intended head off economic crises. This is an example of
This is an example of a discretionary fiscal policy.