answersLogoWhite

0


Best Answer

Discretionary fiscal policy requires deliberate government action. Automatic fiscal policy occurs automatically without (additional) congressional action.

User Avatar

Wiki User

12y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: What is the difference between automatic and discretionary fiscal policy?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

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.


What is the difference between fiscal and non fiscal metering?

The difference between fiscal & non-fiscal metering is when the measurement value is relevance to money.


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.


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.


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.


All of the following are reasons why it is difficult to implement balanced fiscal policy except _____.?

the need for discretionary spending


How can the federal government use fiscal policy to combat unemployment?

The government can cut taxes. This would put more money into the hands of theAmerican citizens, which would get the economy moving a little more and allow business owners to hire on more employees.


When do Discretionary fiscal policy will stabilize the economy most?

deflicts are incurred during recession and surpluses during inflaions.


Who decides which programs will receive discretionary funding?

No one person decides which federal programs will receive discretionary funding during a given fiscal year. Instead, this is decided by a committee of nonpartisan experts from multiple fields.


What is the Difference between fiscal deficit and revenue surplus?

Budget for a fiscal year is a statement of revenue and expenditure of the government for the particular year. If the expenditure is more than the revenue for a particular year, then this difference is called the fiscal deficit. If the revenue is more than the expenditure for a particular year then this difference is called the excess revenue.


What is the difference between Fiscal Month and Calendar Month?

Calendar month is taken into account from January to December, whereas Fiscal month or the Financial month is taken into account from April to March. Fiscal month varies with the Companies to what they try to adapt to.


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.