Deliberate manipulation of government spending and taxes to promote macroeconomic goals is known as _____

Question

Quizplus · Accepted Answer

Discretionary fiscal policy involves intentional changes in government spending and tax policies to stabilize the economy, promote growth, or counteract inflation. Automatic stabilizers, on the other hand, are built-in features of the tax and spending programs that help stabilize the economy without explicit action from policymakers. Expansionary and contractionary fiscal policies are subsets of discretionary fiscal policy and refer to actions taken to stimulate or slow down the economy respectively. Monetary policy refers to actions taken by central banks to manage the money supply and interest rates to achieve macroeconomic goals.

Deliberate Manipulation of Government Spending and Taxes to Promote Macroeconomic