If the federal government implements public-works projects to combat downturns in the economy, this would be an example of

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Quizplus · Accepted Answer

Discretionary fiscal policy involves deliberate government action to influence economic activity, such as implementing public-works projects to stimulate the economy during downturns. This contrasts with automatic stabilizers, which work without specific government intervention.

If the Federal Government Implements Public-Works Projects to Combat Downturns