Asked by
Alexis Crider
on Nov 11, 2024Verified
Discretionary fiscal policy is a policy that _____.
A) is developed in secret
B) applies to some states and not all states
C) applies to only to some specific industries in an economy
D) works automatically without public announcement or plan
E) is an intentional change in taxation or government spending
Discretionary Fiscal Policy
The deliberate manipulation of government purchases, taxation, and transfer payments to promote macroeconomic goals, such as full employment, price stability, and economic growth
Taxation
The practice by which a government imposes financial charges on its citizens or residents to fund public spending and various public expenditures.
Government Spending
The total of all government expenses, including salaries, defense, education, and public services.
- Distinguish between discretionary fiscal policy and automatic stabilizers.
Verified Answer
DM
Learning Objectives
- Distinguish between discretionary fiscal policy and automatic stabilizers.