Deliberate manipulation of government spending and taxes to promote macroeconomic goals is effected by _____

Question

Quizplus · Accepted Answer

Discretionary fiscal policy involves deliberate changes in government spending and taxation with the aim of achieving macroeconomic goals, such as reducing unemployment or stabilizing inflation. The other options refer to specific types of fiscal policy (automatic stabilizers, expansionary or contractionary) which are all subsets of discretionary fiscal policy. Monetary policy, on the other hand, involves the use of interest rates and the money supply to influence economic activity.

Deliberate Manipulation of Government Spending and Taxes to Promote Macroeconomic