The increase in the amount that the government collects in taxes when the economy expands and the decrease in the amount that the government collects in taxes when the economy goes into a recession is an example of A) automatic stabilizers. B) discretionary fiscal policy. C) discretionary monetary policy. D) automatic monetary policy.

A

Automatic stabilizers

Explanation:

These are necessary adjustments that are dependent on the state of the economy at particular times. An expanding economy is an economy in growth, there is a general feeling of stability and there is the mobility of funds around. Due to the presence and indication of growth, there is an increase in the amount of profits or gains made by the economy in general. Hence, government can decide to task more through tax.

However, in periods when there are indicators of an ailing economy, there should be a downward review of tax and the economy is weak at this state. Using the old taxing scheme during the good economy for now would result in an outcome that might further hurt business owners and push the economy more downwards.

Automatic stabilizers are just the mechanism through which the taxation at different times is adjusted

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

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