Discretionary fiscal policy is the government actively making a change to spending or taxes. Automatic fiscal policy happens as a result of taxes or government programs that are already in place. For example in a recession more people will be out of work meaning welfare usage will increase.Answer and Explanation: Discretionary fiscal policy is fiscal policy that is approved and changed based on policy maker's discretion. An example would be a decease in the income tax rates as passed by Congress. Automatic fiscal policy on the other hand needs to approval and varies automatically with the business cycle.Discretionary fiscal policy and automatic stabilizers are frequently confused with each other. If a government has to take any action to make it happen, it is discretionary fiscal policy. If it is something that happens on its own, it is an automatic stabilizer.
What is the difference between fiscal policy and contractionary fiscal policy : Fiscal policy that increases aggregate demand directly through an increase in government spending is typically called expansionary or “loose.” By contrast, fiscal policy is often considered contractionary or “tight” if it reduces demand via lower spending.
What is the meaning of discretionary policy
In macroeconomics, discretionary policy is an economic policy based on the ad hoc judgment of policymakers as opposed to policy set by predetermined rules.
Which of the following is an example of discretionary fiscal policy : a tax decrease passed into law by Congress is an example of a discretionary fiscal policy used to correct a recessionary gap.
In macroeconomics, discretionary policy is an economic policy based on the ad hoc judgment of policymakers as opposed to policy set by predetermined rules. In conclusion, discretionary fiscal policy revolves around taxation and government spending to manage aggregate demand. This demand-side policy is used by the government to achieve key macroeconomic objectives for creating an internal balance in an economy.
What is one advantage of automatic fiscal policy over discretionary fiscal policy
What is the main advantage of automatic stabilizers over discretionary fiscal policy Automatic stabilizers take effect very quickly, whereas discretionary policy can take a long time to implement.The main contractionary policies employed by the United States include raising interest rates, increasing bank reserve requirements, and selling government securities.Contractionary fiscal policy is when the government either cuts spending or raises taxes. It gets its name from the way it contracts the economy. Discretionary expenses are often defined as nonessential spending. This means a business or household is still able to maintain itself even if all discretionary consumer spending stops. Meals at restaurants and entertainment costs are examples of discretionary expenses.
Which of the following is an example of discretionary : Some common discretionary items include: Vacations and travel expenses. Automobiles. Alcohol and tobacco.
What are discretionary and non-discretionary policies : Answer and Explanation:
It can be depicted as a government response to help the economy return to its original state. On the contrary, non-discretionary fiscal policy can be defined as a fiscal policy that arises from the government's design to spend and change taxes.
What are the weaknesses of discretionary fiscal policy
In conclusion, some practical weaknesses of discretionary fiscal policy include time lags, political bias, the crowding-out effect, the impact on budget deficits and public debt, and the risk of creating inflation and uncertainty. Discretionary fiscal policy represents changes in government spending and taxation that need specific approval from Congress and the President. Examples include increases in spending on roads, bridges, stadiums, and other public works.Recognize that a contractionary fiscal policy is one that reduces the level of economic activity in an economy, which is usually done through decreasing government spending or increasing taxes. The most contractionary fiscal policy among the options is a $30 billion decrease in government spending.
What are two examples of contractionary fiscal policy : The three fiscal policy tools used by the government to contract the economy include:
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Antwort What is the difference between fiscal policy and discretionary fiscal policy? Weitere Antworten – What is discretionary and fiscal policy
Discretionary fiscal policy is the government actively making a change to spending or taxes. Automatic fiscal policy happens as a result of taxes or government programs that are already in place. For example in a recession more people will be out of work meaning welfare usage will increase.Answer and Explanation: Discretionary fiscal policy is fiscal policy that is approved and changed based on policy maker's discretion. An example would be a decease in the income tax rates as passed by Congress. Automatic fiscal policy on the other hand needs to approval and varies automatically with the business cycle.Discretionary fiscal policy and automatic stabilizers are frequently confused with each other. If a government has to take any action to make it happen, it is discretionary fiscal policy. If it is something that happens on its own, it is an automatic stabilizer.
What is the difference between fiscal policy and contractionary fiscal policy : Fiscal policy that increases aggregate demand directly through an increase in government spending is typically called expansionary or “loose.” By contrast, fiscal policy is often considered contractionary or “tight” if it reduces demand via lower spending.
What is the meaning of discretionary policy
In macroeconomics, discretionary policy is an economic policy based on the ad hoc judgment of policymakers as opposed to policy set by predetermined rules.
Which of the following is an example of discretionary fiscal policy : a tax decrease passed into law by Congress is an example of a discretionary fiscal policy used to correct a recessionary gap.
In macroeconomics, discretionary policy is an economic policy based on the ad hoc judgment of policymakers as opposed to policy set by predetermined rules.
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In conclusion, discretionary fiscal policy revolves around taxation and government spending to manage aggregate demand. This demand-side policy is used by the government to achieve key macroeconomic objectives for creating an internal balance in an economy.
What is one advantage of automatic fiscal policy over discretionary fiscal policy
What is the main advantage of automatic stabilizers over discretionary fiscal policy Automatic stabilizers take effect very quickly, whereas discretionary policy can take a long time to implement.The main contractionary policies employed by the United States include raising interest rates, increasing bank reserve requirements, and selling government securities.Contractionary fiscal policy is when the government either cuts spending or raises taxes. It gets its name from the way it contracts the economy.
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Discretionary expenses are often defined as nonessential spending. This means a business or household is still able to maintain itself even if all discretionary consumer spending stops. Meals at restaurants and entertainment costs are examples of discretionary expenses.
Which of the following is an example of discretionary : Some common discretionary items include: Vacations and travel expenses. Automobiles. Alcohol and tobacco.
What are discretionary and non-discretionary policies : Answer and Explanation:
It can be depicted as a government response to help the economy return to its original state. On the contrary, non-discretionary fiscal policy can be defined as a fiscal policy that arises from the government's design to spend and change taxes.
What are the weaknesses of discretionary fiscal policy
In conclusion, some practical weaknesses of discretionary fiscal policy include time lags, political bias, the crowding-out effect, the impact on budget deficits and public debt, and the risk of creating inflation and uncertainty.
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Discretionary fiscal policy represents changes in government spending and taxation that need specific approval from Congress and the President. Examples include increases in spending on roads, bridges, stadiums, and other public works.Recognize that a contractionary fiscal policy is one that reduces the level of economic activity in an economy, which is usually done through decreasing government spending or increasing taxes. The most contractionary fiscal policy among the options is a $30 billion decrease in government spending.
What are two examples of contractionary fiscal policy : The three fiscal policy tools used by the government to contract the economy include: