31. Which of the following is an example of an automatic stabilizer?
a. Infrastructure spending
b. Unemployment benefits
c. Corporate tax cuts
d. Export subsidies
32. The term “debt-to-GDP ratio” measures:
a. The total debt owed by the government
b. The total debt owed by individuals in the economy
c. The ratio of government debt to the country’s gross domestic product
d. The ratio of government debt to the country’s gross national product
33. Which of the following is an example of a discretionary fiscal policy measure?
a. Automatic adjustments to income tax rates
b. Automatic adjustments to government transfers
c. Changes in government spending on infrastructure
d. Changes in interest rates by the central bank
34. 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
35. 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
