When the government conducts activist fiscal policy, what type of spending does it usually use?

Question

Quizplus · Accepted Answer

Activist fiscal policy involves using government spending and taxation to stimulate demand or cool down an overheated economy. This is typically done through discretionary spending, which refers to the government's ability to choose how to allocate funds for programs or services outside of mandatory spending (such as entitlements) and net interest spending. Discretionary spending includes programs like infrastructure projects, education, and defense, which can directly impact economic activity.

When the Government Conducts Activist Fiscal Policy, What Type of Spending