A fiscal action that is triggered by the state of the economy is called

Question

Quizplus · Accepted Answer

Automatic fiscal policy refers to changes in government spending and/or taxation that occur automatically in response to changes in economic conditions, such as changes in GDP or unemployment rates. This is in contrast to discretionary fiscal policy, which involves deliberate changes in government spending and/or taxation by policymakers in an effort to stabilize the economy. Generational fiscal policy and the government expenditure multiplier are not relevant to this concept.

A Fiscal Action That Is Triggered by the State of the Economy