Discretionary fiscal policy is when:
A)existing taxation policy automatically smoothes out business cycle fluctuations in the economy.
B)the government changes the levels of expenditure or taxation to achieve a macroeconomic aim.
C)policy is left to the discretion of the Reserve Bank of Australia.
D)politicians are discrete about policy changes and do not advise consumers or producers of new policies.

Question

Quizplus · Accepted Answer

Discretionary fiscal policy refers to deliberate changes in government spending or taxation to impact macroeconomic goals such as controlling inflation, promoting economic growth, or addressing unemployment. It is a proactive approach to economic management that involves government intervention rather than relying on existing policies or market forces.

Discretionary Fiscal Policy Is When