Author Question: The distinction between discretionary fiscal policy and the use of automatic stabilizers is that: ... (Read 90 times)

Starlight · **on:** Jun 30, 2018

The distinction between discretionary fiscal policy and the use of automatic stabilizers is that:
a. only discretionary fiscal policy can stimulate the economy.
b. only automatic stabilizers can stimulate the economy.
c. discretionary fiscal policy, once adopted, is built into the structure of the economy.
d. automatic stabilizers, once adopted, are built into the structure of the economy.
e. only discretionary fiscal policy can be used by the federal government.

Question 2

If a firm's long-run average cost curve is rising, it is experiencing:
a. a constant return to scale.
b. economies of scale.
c. diseconomies of scale.
d. none of these.