asked by Maria on January 8, 2013; Economics. Contractionary fiscal policy is when the government either cuts spending or raises taxes. c) Increasing the level of the minimum wage. Increasing social security tax rates. Which of the following is an example of a fiscal policy? b) Preventing unions from going on strike. Tax cuts can put money into the hands of consumers if the government can send out rebate checks right away. a) Raising taxes in order to cover a budget deficit. b. the policy goals are very different. It reduces the amount of money available for businesses and consumers to spend. 52. The 3 forms include: (1) increase in government purchases of goods and service, (2) a cut in taxes, and (3) an increase in government transfers. A) Adjusting the money supply. Question 36 1 pts Which of the following would be an example of "successful fiscal policy? C) Increasing social security tax rates. (Timely, targeted, and temporary) Permanent tax cuts for corporations Developing new government agencies to increase government spending O Progressive income taxes … For example, stimulating a stagnant economy by increasing spending or lowering taxes, also known as expansionary fiscal policy, runs the risk of causing inflation to rise. For example, government spending should be directed toward hiring workers, which immediately creates jobs and lowers unemployment. 51. Expansionary fiscal policy works fast if done correctly. Decreasing corporate income tax rates. Examples of fiscal policy include changing tax rates and public spending to curb inflation at a macroeconomic level. Which of the following government actions is an example of fiscal policy? Get the detailed answer: Which of the following is an example of a discretionary fiscal policy?a. D) Instituting wage and price controls. Fiscal Policy of an economy is the responsibility of the Government. c. it is a slower process than fiscal policy. An example of government spending as expansionary fiscal policy is the American Recovery and Reinvestment Act of 2009. Purchasing fighter planes from a U.S. manufacturer. Fiscal policy that increases aggregate demand. Other examples include extending tax cuts to counteract a cut in government spending to avoid causing an economic recession. Monetary policy differs from fiscal policy in that a. it has to be exercised by the legislature. a tax cut passed by Congress to fight a recessionb. All of the above. It gets its name from the way it contracts the economy. An example of nondiscretionary fiscal policy would be The existence of the progressive federal income tax If you were to use an aggregate supply aggregate demand diagram to model nondiscretionary and discretionary fiscal policy in reaction to a negative aggregate demand shock, you would see the aggregate demand curve move d. it is a faster process than fiscal policy. incom B) Regulating utility prices. Match the following … Which of the following policies will definitely … This effort was taken on … Which of the following government actions is an example of fiscal policy? Define expansionary fiscal policy and list its three forms.