Johnny Has Been Working a Lot of Overtime During the Most

Multiple Choice

Johnny has been working a lot of overtime during the most current economic boom. As a result, his income is high enough for him to move from the 10 percent tax bracket to the 15 percent tax bracket. So, Johnny pays a higher percentage of a higher income to the government this year. The increased amount paid to the government is an example of:

A) discretionary fiscal policy slowing the economy.
B) automatic stabilizers slowing the economy.
C) discretionary fiscal policy encouraging economic activity.
D) automatic stabilizers encouraging economic activity.