Automatic stabilizers in fiscal policy include: MCQ with Answer and Explanation

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Automatic stabilizers in fiscal policy include:

A. changes in repo rate

B. progressive income taxes and unemployment benefits

C. open market operations

D. discretionary changes in government spending

Answer: Option B

Solution (By JKSSB Mock Tests)

Automatic stabilizers such as progressive taxes and unemployment benefits automatically reduce economic fluctuations.

This question belongs to: Economy GK Economy Set 1

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Question #1

The 'Silver Revolution' is associated with:

A. milk production

B. fish production

C. wool production

D. egg and poultry production

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Correct Answer: Option D

Explanation:
Silver Revolution refers to rapid growth in egg and poultry production.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'New Development Bank' headquarters is in:

A. Shanghai

B. New Delhi

C. Moscow

D. Beijing

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Correct Answer: Option A

Explanation:
NDB headquarters is in Shanghai.

This question belongs to: Economy GK Economy Set 1

Question #3

A price ceiling set below the equilibrium price generally results in:

A. increase in supply

B. shortage

C. surplus

D. equilibrium

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Correct Answer: Option B

Explanation:
A price ceiling below equilibrium creates excess demand or a shortage.

This question belongs to: Economy GK Economy Set 1

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