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Discretionary fiscal policy refers to:

A. any change in government spending or taxes that destabilizes the economy.

B. the authority that the President has to change personal income tax rates.

C. intentional changes in taxes and government expenditures made by Congress to stabilize the economy.

D. the changes in taxes and transfers that occur as GDP changes.

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Garima Menon
Garima MenonLv7
31 Jan 2021

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Related questions

1. Discretionary fiscal policy refers to:

A. Any change in government spending or taxes that destabilizes the economy.

B. The authority that the President has to change personal income tax rates.

C. Intentional changes in taxes and government expenditures made by Congress to stabilize the economy.

D. The changes in taxes and transfers that occur as GDP changes.

 

2. Countercyclical discretionary fiscal policy calls for:

A. Surpluses during recessions and deficits during periods of demand-pull inflation.

B. Deficits during recessions and surpluses during periods of demand-pull inflation.

C. Surpluses during both recessions and periods of demand-pull inflation.

D. Deficits during both recessions and periods of demand-pull inflation.

 

3. Contractionary fiscal policy is so named because of it:

A. Involves a contraction of the nation's money supply.

B. Necessarily reduces the size of government.

C. Is aimed at reducing aggregate demand and thus achieving price stability.

D. Is expressly designed to expand real GDP.

 

Discretionary fiscal policy refers to changes in:

a. government spending or taxes made by the President on Twitter.

b. money supply and interest rates made by the President.

c. taxes and transfers that occur automatically as GDP changes.

d. taxes and government expenditures made by Congress to stabilize the economy.

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.

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