Each of the following is an example of discretionary fiscal policy,except

A) public works programs.
B) changing tax rates.
C) changes in the level of government spending.
D) unemployment insurance benefits.

Question

Leticia Navas · Accepted Answer

Final Answer : D, Explanation :  Unemployment insurance benefits are an example of automatic stabilizers, not discretionary fiscal policy. Automatic stabilizers are built-in features of the tax and transfer systems that automatically increase government spending during economic downturns (e.g. unemployment benefits) and decrease spending during economic expansions (e.g. lower demand for welfare programs). Discretionary fiscal policy, on the other hand, involves deliberate changes in government spending and tax policies in order to address economic fluctuations. A, B, and C are all examples of discretionary fiscal policy.

Each of the following is an example of discretionary fiscal policy,except

A) public works programs.
B) changing tax rates.
C) changes in the level of government spending.
D) unemployment insurance benefits.

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Learning Objectives

Learning Objectives

Related questions

Each of the following is an example of discretionary fiscal policy,exceptA) public works programs.B) changing tax rates.C) changes in the level of government spending.D) unemployment insurance benefits.

Definitions

Learning Objectives

Learning Objectives

Related questions

Each of the following is an example of discretionary fiscal policy,except

A) public works programs.
B) changing tax rates.
C) changes in the level of government spending.
D) unemployment insurance benefits.