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deflicts are incurred during recession and surpluses during inflaions.

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Q: When do Discretionary fiscal policy will stabilize the economy most?
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Related questions

Measures that the federal government takes to stabilize the economy are .?

fiscal policy


What are the Measure that the federal government takes to stabilize the economy?

fiscal policy


What is the main goal of both fiscal and monetary policy?

The main goal of both fiscal and monetary policy is to stabilize the economy.


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.


What is the way governments use taxes and spending to stabilize the economy called?

Fiscal Policy


What are the two tools of fiscal policy that governments can use to stabilize an economy?

government spending and taxation


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 an example of discretionary stabilization?

An example of discretionary stabilization is when the government implements fiscal policy measures, such as changing tax rates or increasing government spending, to counteract economic fluctuations and stabilize the economy. This can help to stimulate demand during economic downturns or curb inflation during periods of overheating.


The way the government uses taxes and spending to stabilize the economy is called what?

Fiscal policy is the way the government uses taxes and spending to stabilize the economy. It is based on the theories of British economist John Maynard Keynes, also known as Keynesian economics.


The way the government uses taxes and spending to stabilize the economy is called .?

Fiscal policy is the way the government uses taxes and spending to stabilize the economy. It is based on the theories of British economist John Maynard Keynes, also known as Keynesian Economics.


Which fiscal policy strategy would the federal government most likely use to stablize the economy?

The fiscal policy strategy that the Federal government would most likely use to stabilize the economy during times of inflation is to raise taxes. However, they could also decrease government spending.


Government's efforts to stabilize the business cycle through fiscal policy can destabilize the economy due to the presence of what?

lags in the process of crafting a budget appropriate to the circumstances.