A fiscal action that is triggered by the state of the economy is called
A) monetarist policy.
B) the tax wedge.
C) automatic fiscal policy.
D) the multiplier.

Question

Quizplus · Accepted Answer

Automatic fiscal policy refers to government spending or taxation that adjusts automatically in response to changes in the state of the economy, such as an increase in unemployment or a decrease in consumer spending. This type of policy is designed to stabilize the economy without requiring explicit legislative action.

A Fiscal Action That Is Triggered by the State of the Economy