Which of the following describes a discretionary fiscal policy action/program?

Question

Quizplus · Accepted Answer

Discretionary fiscal policy actions/programs are intentional changes in government spending or taxation that are implemented to stabilize the economy. Option C describes a discretionary fiscal policy action where Congress authorizes a temporary increase in unemployment insurance benefits for an additional seven weeks to help stimulate the economy during a period of high unemployment. Options A, B, and D are examples of automatic stabilizers, which are built-in features of the tax and transfer system that automatically stabilize the economy without the need for deliberate action by policymakers.

Which of the Following Describes a Discretionary Fiscal Policy Action/program