It gets its name from the way it contracts the economy. Define expansionary fiscal policy and list its three forms. Tax cuts can put money into the hands of consumers if the government can send out rebate checks right away. Contractionary fiscal policy is when the government either cuts spending or raises taxes. Which of the following policies will definitely … For example, government spending should be directed toward hiring workers, which immediately creates jobs and lowers unemployment. (Timely, targeted, and temporary) Permanent tax cuts for corporations Developing new government agencies to increase government spending O Progressive income taxes … Examples of fiscal policy include changing tax rates and public spending to curb inflation at a macroeconomic level. a tax cut passed by Congress to fight a recessionb. Which of the following government actions is an example of fiscal policy? A) Adjusting the money supply. Which of the following government actions is an example of fiscal policy? Increasing social security tax rates. Purchasing fighter planes from a U.S. manufacturer. 52. Which of the following is an example of a fiscal policy? Question 36 1 pts Which of the following would be an example of "successful fiscal policy? Decreasing corporate income tax rates. C) Increasing social security tax rates. Fiscal Policy of an economy is the responsibility of the Government. b. the policy goals are very different. 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. B) Regulating utility prices. Expansionary fiscal policy works fast if done correctly. It reduces the amount of money available for businesses and consumers to spend. 51. Monetary policy differs from fiscal policy in that a. it has to be exercised by the legislature. Get the detailed answer: Which of the following is an example of a discretionary fiscal policy?a. c) Increasing the level of the minimum wage. An example of government spending as expansionary fiscal policy is the American Recovery and Reinvestment Act of 2009. 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 All of the above. asked by Maria on January 8, 2013; Economics. incom Fiscal policy that increases aggregate demand. c. it is a slower process than fiscal policy. Other examples include extending tax cuts to counteract a cut in government spending to avoid causing an economic recession. 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