A deliberate policy change in taxes and government spending to influence the level of aggregate demand is called:

Question

Quizplus · Accepted Answer

Discretionary fiscal policy refers to deliberate policy changes in taxes and government spending to influence the level of aggregate demand. Option A, automatic stabilizers, refer to government programs or tax policies that automatically adjust to stabilize the economy during economic fluctuations. Options C and D, fiscal deficit and fiscal surplus respectively, refer to the difference between government spending and government revenues.

A Deliberate Policy Change in Taxes and Government Spending to Influence