Question

Fiscal policies that require no government action but that are expansionary when the economy contracts and contractionary when the economy expands are known as:
A. autonomous spending policies
B. automatic stabilizers discretionary
C. fiscal policy
D. destabilizing fiscal policies

Answer 1

Answer:

The correct answer is B

Explanation:

Automatic stabilizers are kind or form of fiscal policy which is created or designed in order to offset the fluctuations in the economic activity of the nations by the normal operations without extra, timely authorization through the policymakers or government.

Fiscal policy are the polices where the levels adjust the spendings by government as well as tax rates in order to monitor as well as influence the nation economy.

So, the fiscal policies needed no government action but are expansionary when the economy contracts and expands is referred to as the automatic stabilizers.