Fiscal Policy Review

Recession raises the amount of unemployment compensation

• automatic

• expansionary

• discretionary

• contractionary

The government cuts personal income tax rates.

• automatic

• discretionary

• expansionary

• contractionary

The government eliminates favorable tax treatment on long-term capital gains.

• automatic

• discretionary

• expansionary

• contractionary

Incomes rise; as a result, people pay a larger fraction of their income in taxes.

• automatic

• discretionary

• expansionary

• contractionary

As a result of a recession, more families qualify for food stamps and welfare benefits.

• automatic

• discretionary

• expansionary

• contractionary

The government eliminates the deductibility of interest expense for tax purposes.

• automatic

• discretionary

• expansionary

• contractionary

The government launches a major new space program to explore Mars.

• automatic

• discretionary

• expansionary

• contractionary

The government raises Social Security taxes.

• automatic

• discretionary

• expansionary

• contractionary

Corporate profits increase; as a result, government collects more corporate income taxes.

• automatic

• discretionary

• expansionary

• contractionary

The government raises corporate income tax rates.

• automatic

• discretionary

• expansionary

• contractionary