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Explain how each fiscal policy influences GDP.
Expansionary Fiscal Policy - Increases in government expenditures and/or decreases in taxes to achieve particular economic goals.
Contractionary Fiscal Policy - Decreases in government expenditures and/or increases in taxes to achieve particular economic goals.
Discretionary Fiscal Policy- Deliberate changes in government expenditures and/or taxes to achieve particular economic goals.
Automatic Fiscal Policy - Changes in government expenditures and/or taxes that occur automatically without (additional) congressional action.
Expenditure, taxations, and loan taking policies of the government are called as
Government payments to households for which no good or service is provided in return are called:
A. transfer payments.
B. government purchases.
C. consumption expenditures.
D. investment expenditures.