An example of automatic fiscal policy is when
A. tax revenues decrease as real GDP decreases.
B. Congress passes a law that raises tax rates.
C. Congress decides to cut government expenditure.
D. the president drafts a bill to reduce defense spending.
Answer:A
An example of automatic fiscal policy is when
A. tax revenues decrease as real GDP decreases. B. Congress passes a law that raises tax rates. C. Congress decides to cut government expenditure. D. the president drafts a bill to reduce defense spending.