Question

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.

Answer 1

1-The federal government increases spending on rebuilding the New Jersey shore following a hurricane. This is an example of an automatic stabilizer.

2- The Federal Reserve sells Treasury securities. This is an example of a discretionary fiscal policy.

3- The total the federal government pays out for unemployment insurance decreases during an expansion. This is an example of not a fiscal policy.

4- The federal government changes the required gasoline mileage for new cars. This is an example of an automatic stabilizer.

5- Congress and the president enact a temporary cut in payroll taxes. This is an example of a discretionary fiscal policy.