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Discretionary fiscal policy refers to the deliberate use of government spending and taxation changes to influence economic activity. This policy is enacted through legislative action and is often employed to address economic fluctuations, such as stimulating growth during a recession or cooling down an overheated economy. Unlike automatic stabilizers, which operate without direct intervention, discretionary measures require active decision-making by policymakers.
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What is discretionary fiscal policy and built in stabilizer?
built in stabilisers also known as automatic stabilisers/non-discretionary fiscal policy that automatically adjust for cyclical upswing and downswing imbalances in the economy. they are a form of fiscal policy which auto-adjust the economic imbalances without any form of intentional/discretional intervention of policy formulators. this id contrary to the discretionary fiscal policy, which involves active involvment of policy makers through the intentional use of tax and expenditure to regulate the economy.
When do Discretionary fiscal policy will stabilize the economy most?
deflicts are incurred during recession and surpluses during inflaions.
All what are reasons why it is difficult to put balanced fiscal policy into practice exept?
This cannot be answered correctly. You will have to give me some choices to choose from.
What do monetarists criticize fiscal policy?
Monetarists criticize fiscal policy primarily because they believe it can lead to inflation and economic instability due to its reliance on government spending and taxation decisions. They argue that fiscal policy is often subject to political pressures, resulting in inefficient allocation of resources. Instead, monetarists advocate for controlling the money supply as a more effective means of managing the economy, emphasizing the importance of stable monetary policy over discretionary fiscal interventions.
Distinguish between discretionary and non-discretionary fiscal policy?
Non-discretionary policies are ones that automatically happen. A progressive income tax and the welfare system both act to increase aggregate demand in recessions and to decrease aggregate demand in overheated expansions. Discretionary policies are those that the government chooses to do in response to conditions -- e.g. enact a tax rate cut.
What is the difference between automatic and discretionary fiscal policy?
Discretionary fiscal policy requires deliberate government action. Automatic fiscal policy occurs automatically without (additional) congressional action.
What is discretionary fiscal policy and built in stabilizer?
built in stabilisers also known as automatic stabilisers/non-discretionary fiscal policy that automatically adjust for cyclical upswing and downswing imbalances in the economy. they are a form of fiscal policy which auto-adjust the economic imbalances without any form of intentional/discretional intervention of policy formulators. this id contrary to the discretionary fiscal policy, which involves active involvment of policy makers through the intentional use of tax and expenditure to regulate the economy.
All of the following are reasons why it is difficult to implement balanced fiscal policy except _____.?
the need for discretionary spending
When do Discretionary fiscal policy will stabilize the economy most?
deflicts are incurred during recession and surpluses during inflaions.
All what are reasons why it is difficult to put balanced fiscal policy into practice exept?
This cannot be answered correctly. You will have to give me some choices to choose from.
The group of three economists appointed by the President to provide fiscal policy recommendations is the?
Fiscal policy consists of deliberate changes in government spending and tax collections designed to achieve full employment, control inflation, and encourage economic growth. Discretionary ("active") changes in government spending and taxes are at the option of the Federal government while non-discretionary ("automatic") changes occur without congressional action. Discretionary fiscal policy is often initiated on the advice of the President's Council of Economic Advisers (CEA), a group of three economists appointed by the President to provide expertise and assistance on economic matters.
What type of government spending is often the result of fiscal policy?
All government spending is ultimately the result of fiscal policy. Fiscal policy is another way of saying "how government spends money it raises through taxation to influence the economy". A government that believes it should not play a large part in driving economic demand through spending (a 'tight' fiscal policy) would typically raise and spend less than a government pursuing a 'loose' fiscal policy. If you count basic state expenditure on social security and healthcare as being non-negotiable then you might typically see a government engaged in discretionary spending such as large infrastructure projects as a result of fiscal policy (i.e. to directly employ the unemployed as workers and boost the economy). These kinds of discretionary spending most often result from fiscal policy. You may also want to explore the related links.
Distinguish between discretionary and non-discretionary fiscal policy?
Non-discretionary policies are ones that automatically happen. A progressive income tax and the welfare system both act to increase aggregate demand in recessions and to decrease aggregate demand in overheated expansions. Discretionary policies are those that the government chooses to do in response to conditions -- e.g. enact a tax rate cut.
What are the four major public assistance programs of the federal government?
Public EducationHousing/Urban RenewalTransportationFood
What is the difference between discretionary and non discretionary spending?
Discretionary fiscal policies are those that are enacted in response to a need, for example, a tax cut. Non-discretionary fiscal policies are those that happen regardless of conditions or need, for example, the welfare system.
Fiscal policy and its objectives?
fiscal policy OBJ. in relation to taxation policy and expenditure policy
What is fiscal policy centered on?
Fiscal policy is a policy centered on ideas and research.
