The deliberate change in taxes,transfer payments,or government expenditures to achieve macroeconomic policy objectives is known as
A) expansionary fiscal policy.
B) contractionary fiscal policy.
C) discretionary fiscal policy.
D) automatic stabilizers.

Question

Quizplus · Accepted Answer

Discretionary fiscal policy is the intentional use of government spending, taxation, and transfer payments to achieve specific macroeconomic goals such as economic growth and low unemployment. Expansionary fiscal policy refers to increasing government spending or reducing taxes to stimulate economic activity, while contractionary fiscal policy involves decreasing government spending or increasing taxes to slow down economic growth. Automatic stabilizers are features of the economy that automatically help to stabilize economic fluctuations without the need for explicit government action, such as unemployment benefits and progressive income taxes.

The Deliberate Change in Taxes,transfer Payments,or Government Expenditures to Achieve