26. The term “austerity measures” refers to:
a. Expansionary fiscal policies
b. Contractionary fiscal policies
c. Expansionary monetary policies
d. Contractionary monetary policies
27. Which of the following is an example of an automatic stabilizer?
a. Discretionary government spending
b. Means-tested welfare programs
c. Progressive income taxes
d. Infrastructure investment
28. The term “cyclical 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. International trade imbalances
29. Which of the following is an example of a contractionary fiscal policy measure?
a. Decreasing income tax rates
b. Increasing government transfers
c. Increasing government spending
d. Decreasing government spending
30. The term “fiscal stimulus” refers to:
a. Policies that increase government borrowing
b. Policies that decrease government borrowing
c. Policies that increase interest rates
d. Policies that decrease interest rates
