Automatic stabilizers are an example of discretionary fiscal policy.

Question

Quizplus · Accepted Answer

Automatic stabilizers are not an example of discretionary fiscal policy. Automatic stabilizers are built-in features of the tax and transfer system that automatically respond to economic conditions, providing stability without the need for explicit government action. Discretionary fiscal policy involves deliberate changes in government spending and/or taxation to achieve a specific economic goal.

Automatic Stabilizers Are an Example of Discretionary Fiscal Policy