36. The term “fiscal consolidation” refers to:
a. Expansionary fiscal policies
b. Contractionary fiscal policies
c. Expansionary monetary policies
d. Contractionary monetary policies
37. 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
38. 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
39. Which of the following is an example of an automatic stabilizer?
a. Discretionary government spending
b. Means-tested welfare programs
c. Flat income tax rates
d. Infrastructure investment
40. The term “austerity measures” refers to:
a. Expansionary fiscal policies
b. Contractionary fiscal policies
c. Expansionary monetary policies
d. Contractionary monetary policies