Automatic fiscal policy occurs
A. because monetary policy is effective.
B. because tax revenues and transfer payments fluctuate with real GDP.
C. because government expenditures on goods and services fluctuate with real GDP.
D. when the Congress makes changes to transfer payment programs.
Answer:B
Automatic fiscal policy occurs
A. because monetary policy is effective. B. because tax revenues and transfer payments fluctuate with real GDP. C. because government expenditures on goods and services fluctuate with real GDP. D. when the Congress makes changes to transfer payment programs.