Nondiscretionary fiscal policy

A) entails legislative changes in government spending or taxes to stabilize the economy.
B) include changes in tax rates designed to reduce unemployment.
C) is the culprit whenever the federal government runs a budget deficit.
D) involves changes in spending and taxes that occur automatically as economic conditions change.

Nondiscretionary Fiscal Policy

Government policies related to taxation and spending that automatically adjust without the need for explicit action by policy makers.

Legislative Changes

Modifications or alterations to existing laws enacted by a legislative body that can affect various sectors of the economy or society.

Budget Deficit

The financial situation in which a government's expenditures exceed its revenues within a specific period, leading to borrowing or debt accumulation.