46. The term “structural deficit” refers to a budget deficit that arises due to:
a. Automatic stabilizers
b. Fluctuations in the business cycle
c. Changes in government policies
d. Long-term structural issues in the economy
47. Which of the following is an example of an expansionary fiscal policy measure?
a. Increasing income tax rates
b. Decreasing government transfers
c. Increasing government spending on education
d. Decreasing corporate tax rates
48. The term “fiscal consolidation” refers to:
a. Expansionary fiscal policies
b. Contractionary fiscal policies
c. Expansionary monetary policies
d. Contractionary monetary policies
49. Which of the following is an example of a discretionary fiscal policy measure?
a. Changes in tax brackets to adjust for inflation
b. Automatic adjustments to government transfers based on income
c. Increasing government spending on defense during a war
d. Changes in interest rates to control inflation
50. The term “cyclically adjusted budget deficit” measures the budget deficit adjusted for:
a. Changes in government policies
b. Changes in interest rates
c. Fluctuations in the business cycle
d. Long-term structural issues in the economy
